PELIKAN HOLDING AG 
By Pelikan Group
FINANCIAL KEY FIGURESCHF m JUNE 30, 2011 June 30, 2010
Net sales | 123.7 | 148.4 |
Operating results Earnings before interest, taxes, depreciation and | 5.9 | 1.2 |
amortization (EBITDA) | 12.0 | 8.2 |
Result attributable to shareholders of Pelikan Holding AG | 1.8 | (1.2) |
Total assets | 199.5 | 234.0 |
Shareholders’ equity | 1.2 | 9.4 |
Shareholders’ equity in % of total assets 0.6% 4.0%
Net debts* 23.8 30.0
OPERATING KEY FIGURES
Number of employees 1,384 1,378
KEY FIGURES PER SHARECHF/ share
Result attributable to shareholders of Pelikan Holding AG 1.2 (0.8)
Equity (Net Assets Value) | ||
- before deferred taxes | (3.3) | 0.6 |
- after deferred taxes | 0.8 | 6.3 |
SHARE PRICE
CHF
High/ low 63.00/46.50 50.00/40.00
At June 30 50.00 49.95*Interest-bearing debt less cash and cash equivalent
Pelikan shares, Swiss security number 632875
CONSOLIDATED INCOME STATEMENTPelikan Holding AG Group (not audited)
CHF m JAN - JUNE, 2011 1. HALF 2010
Net sales | 123.7 | 148.4 |
Other operating income Change in the level of finished goods and work in | 1.4 | 1.5 |
process - 1.5
125.1 151.4Materials purchased (55.2) (74.7) Personnel expenses (32.7) (37.6) Depreciation on tangible fixed assets (2.0) (2.4) Amortization of intangible assets (3.2) (3.5) Impairment on intangible assets - (0.3)
Other operating expenses (26.1) (31.7)Operating results | 5.9 | 1.2 |
Financial result | (1.8) | (0.9) |
Results from associated companies | 0.9 1.1 | |
Profit before taxation | 5.0 1.4 | |
Taxes – company and subsidiaries | (2.1) (1.4) | |
Net profit | 2.9 0.0 |
Profit / (loss) attributable to:
- shareholders of Pelikan Holding AG 1.8 (1.2)- minority interests 1.1 1.22.9 0.0
Pelikan Holding AG Group | Interim Report as of June 30, 2011 | |||||
Pelikan Holding AG Group (not audited)
(Audited)
DECEMBER 31,CHF m JUNE 30, 2011 2010 ASSETS
Current assetsCash and cash equivalents 5.7 6.9
Trade receivables 48.1 41.8
Other short term receivables 22.3 30.0
Inventories 60.7 54.3
Prepayments 0.8 0.6
137.6 133.6
Non-current assets | ||
Tangible fixed assets | 34.3 | 36.3 |
Financial assets | ||
Loans and investments | 11.4 | 13.1 |
Deferred tax assets 6.1 6.5
17.5 19.6
Intangible assets 10.1 13.7
61.9 69.6 TOTAL ASSETS 199.5 203.2
LIABILITIES AND EQUITY Current liabilitiesBank liabilities 20.1 19.6
Accounts payable 25.2 29.9
Other short term liabilities 49.2 46.2
Short term provisions
Provisions for pensions and similar commitments 3.0 3.1
Other provisions 1.3 2.6
4.3 5.7
98.8 101.4
Non-current liabilitiesBank liabilities 9.4 10.4
Long term provisions
Provisions for pensions and similar commitments 53.8 57.5
Provisions for deferred tax 0.1 0.1
Other provisions 2.8 2.9
56.7 60.5
Other long term liabilities 18.4 18.0
Total liabilities 84.5 88.9 Shareholders' EquityCapital stock 100.1 100.1
Capital reserve 3.2 - Revaluation reserve 6.2 6.7
Foreign currency reserves (2.2) (1.5) Retained earnings (106.1) (108.0)
Total equity excluding minorities 1.2 (2.7) Minority Interests 15.0 15.6 Total equity including minorities 16.2 12.9 TOTAL EQUITY AND LIABILITIES 199.5 203.2Pelikan Holding AG Group | Interim Report as of June 30, 2011 | ||||||
Pelikan Holding AG Group (not audited)
CHF m JAN - JUNE, 2011 1. HALF 2010
Cash flows from business activities
Profit before minority interest 2.9 0.0
Adjustments for :Depreciation and amortization 5.2 5.9Impairment of intangible assets - 0.3Deferred taxes 0.1 (0.3) Change in pension provisions (1.6) (1.8) Change in other provisions (1.2) (0.7) Book (gain)/loss from disposals of tangiblefixed assets (net) (0.1) 0.2Results from associated companies (0.9) (1.1) Change in trade receivables, other short termreceivables and prepayments (2.5) (5.8)Change in inventories (9.4) (5.2) Change in accounts payables, other short termliabilities and deferred income 2.3 9.2 (5.2) 0.7Cash flows from investing activities
Investments in tangible fixed assets (1.5) (1.1) Disposals of tangible fixed assets 0.1 0.3
Investments in intangible assets (0.1) (0.3) Disposal of intangible assets 0.1 - Dividend from associated companies 1.7 0.30.3 (0.8)Cash flows from financing activities
Net advances from parent company 3.9 7.0
Changes in bank liabilities – current 1.4 (2.4) Changes in bank liabilities – non-current (0.6) (2.2) Dividend to minorities (0.9) (2.1)3.8 0.3Effect of exchange rate changes and inflationadjustments (0.1) (1.6) Net change in cash and cash equivalents (1.2) (1.4) Cash and cash equivalents at January 1 6.9 11.9Cash and cash equivalents at June 30 5.7 10.5Pelikan Holding AG Group | Interim Report as of June 30, 2011 | ||||||
Pelikan Holding AG Group (not audited)
1. Basis of PreparationThe interim consolidated financial statements are unaudited and have been prepared in accordance with Swiss GAAP FER 12. These consolidated financial statements should be read in conjunction with the Annual Financial Report for the year ended 31 December 2010.
2. General Business ActivitiesThe Group basically engages in the manufacturing and distribution of writing instruments, art, painting and hobby products, school and office stationery as well as distribution of printer consumables.
3. Seasonality of Interim OperationsThe Group’s core business is generally affected by the “back to school” season in
Europe, which normally records higher sales in the mid of the year.4. Net SalesCHF m JAN - JUNE, 2011 1. HALF 2010
Sales to third parties 119.0 143.4
Sales to related parties 4.7 5.0
Total 123.7 148.4
Sales by region
JAN - JUNE, 2011 1. HALF 2010CHF m % CHF m %
Germany | 55.8 | 45.1% | 71.2 | 48.0% |
Italy | 8.4 | 6.8% | 10.5 | 7.1% |
Switzerland | 4.3 | 3.5% | 4.5 | 3.1% |
Rest of Europe 19.5 15.7% 26.2 17.6%
Total Europe 88.0 71.1% 112.4 75.8% Latin-America 27.6 22.3% 28.8 19.4% Other countries 8.1 6.6% 7.2 4.8% Total 123.7 100.0% 148.4 100.0%
Pelikan Holding AG Group | Interim Report as of June 30, 2011 | ||||||
In the first half of year 2011 the Group recorded a decrease in net sales of 16.6% compared to the corresponding period of year 2010. The consolidated net sales as reported in Swiss Franc (“CHF”) were mainly influenced by a strengthening of the Swiss Franc against the Group’s major trade currencies such as Euro (“EUR”) and US Dollar (“USD”). The Euro and USD have weakened by 11.5% and 18.0% on average for the first half of year 2011 compared to the corresponding period of year 2010.
The decrease in sales in Germany and Europe is mainly resulting from a general weak development of the sales of printer consumables but also from the strategic decision to end the distribution of Original Equipment Manufacturer (“OEM”) and private label printer consumables and to concentrate on branded business in the Hardcopy sector.The business outside Europe performed according to our expectations. Despite the strengthening of the Swiss Franc the sales in those regions translated into CHF remained stable. In comparison, the total Europe sales to the total group sales decreased from 75.8% in the corresponding period of year 2010 to 71.1% for the first half of year 2011.The operating results increased to CHF5.9 million in the current period as compared to CHF1.2 million in the first half of year 2010. This increase was mainly the result of an improved gross margin percentage due to a concentration of branded business but also driven by further cost reduction projects as i.e. in the Group’s logistic flows.From the loan agreement dated 29 April 2010 amounting to EUR 5 million between Pelikan Holding AG and Pelikan International Corporation Berhad (“PICB”), on 28 April 2011 PICB had declared an amount of EUR 2.5 million as waiver of claim with debt warrant effective by 28 April 2011. This amount had been recognised as capital reserve in the equity of the Group.Pelikan Holding AG Group | Interim Report as of June 30, 2011 | ||||||
The weak development of the business with printer consumables in the German and European market is expected to continue also in the second half of the year. Furthermore the end of the distribution of OEM and private label printer consumables will result in lower sales in the second half of the year compared to the corresponding period in year 2010.
Overall, the Group anticipates the sales of total year 2011 to be lower than previous year.The Group is striving to explore into new markets in order to expand the sales and profitability of the Group. Most of the European economies are still in recession, but any turnaround will positively influence the Group’s turnover.Following the weak development of the sales of the Group, also the operating results as well as the cash flows will not achieve our expectations. Therefore, the management has decided to work out a restructuring plan for its German operations in order to strengthen their business prospects for the future and to achieve sustainable results. In the event that such a program would be approved in the second half of the year, this could have a negative impact on the Group’s result in the year 2011.For the further financial support the Company is in continuous communication with its major shareholder.Feusisberg, September 2011Pelikan Holding AG Group | Interim Report as of June 30, 2011 | ||||||
