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Hansen Transmissions: Q4 and Full Year 2009 results
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Hansen Transmissions International NV announces its results for the 3 months ended 31 March 2009 and for the 12 months ended 31 March 2009.
HIGHLIGHTS FINANCIAL YEAR 2009
# Revenue growth of +45%
o Revenue of EUR 609 million, from EUR 421 million prior year
o Revenue from Wind turbine Gearboxes +52% to EUR 515 million
o Revenue from Industrial Gearboxes +15% to EUR 94 million
# EBITDA margin of 15.38%
o EBITDA1 of EUR 93.7 million from EUR 61.1 million last year, increase of 53%
o EBITDA margin of 15.38%, from 14.50% prior year
# Net profit growth of +44%
o Net Profit of EUR 45.0 million, from EUR 31.3 million last year
o Basic EPS2 of 0.067 EUR (+17%)
# Whilst contracted 2009 order book remains unchanged, Hansen is working with long term
customers to manage their requirements in line with current operating and credit
environment
# Capacity expansion plan to 14,300 MW in financial year 2013 on-track and fully-financed
# Ongoing developments in India and China position the Company well for the future
# Continuing to actively pursue cost measures to adapt to the current environment and support EBITDA margins and cash flow
1 EBITDA = earnings before interest, tax, depreciation & amortisation
2 Basic EPS = Basic Earnings Per Share calculated as Net Profit for the year divided by the weighted average number of ordinary shares
Ivan Brems, Hansen Transmissions's Chief Executive Officer, commented:
"Despite considerable economic turmoil during the year, Hansen has achieved significant progress. In the wind gearbox business, we have outperformed the overall wind market with 52% revenue growth. This success was driven by a solid first year of operations at the expanded factory in Lommel, Belgium. The delivery of our first gearboxes from the new factories in India and China has set the foundation for Hansen to build a strong position in these growth regions."
OUTLOOK
The Company remains confident in the projected medium and long term growth prospects of the international wind power market. Hansen's strong product offering and the quality of its customer base ensure that the Company remains well positioned in this market.
The Company expects that the volume and pricing pressure resulting from the difficulties experienced in the credit markets will continue to cause volatility in 2009.
For the financial year 2010, Hansen expects its overall markets to show low to moderate growth, and the company targets its full year revenue growth accordingly.
POSITION
WIND TURBINE GEARBOXES
Market update
In 2008, new installations of wind energy worldwide reached approximately 28.000 MW, representing a 42% increase in cumulative installations over 2007. Current forecasts by BTM (Source: BTM Consult Aps "International Wind Energy Development - World Market Update 2008" - March 2009) indicate an average annual growth rate of approximately 18% until 2013, with an annual additional capacity installed in 2013 of approximately 60.000 MW.
Hansen's Position
Hansen is one of the world leaders in multi-MW Wind turbine gearboxes. The Company has a dedicated and fully integrated production plant in Lommel, Belgium, which is designed to manufacture large pieces in serial production with a consistently high level of quality and reliability.
Through its expansion projects in India and China, Hansen is closely following the investment initiatives of its customers. In addition to providing proximity to the world's fastest growing markets, this also gives Hansen access to low cost production countries.
INDUSTRIAL GEARBOXES
In the traditional heavy industrial markets, such as mining, power generation and water treatment, orders remained strong in the first half of last financial year. The outlook for industrial gearboxes weakened in the second half of the financial year 2009 as a result of the global impact of the financial crisis on capital goods investments. Over the year, this activity has seen a solid revenue growth of 15% to EUR 94 million
Hansen's industrial gearboxes business is increasingly focusing on the development of close customer relationships, complementing its high quality product range with excellent service.
ORGANISATION
Management Committee
In August 2008, Hansen expanded its management committee with Cliff Dawson joining as Chief Operating Officer. Cliff joined Hansen from the automotive industry where he had a successful career in operations management with Ford, Visteon and most recently with Automotive Components Holdings Ltd. where he was Vice President of the Glass Operation.
Management Functions
A new management function has been created with Dr Jan Declercq joining in September 2008 as Director Business Development, Sales & Marketing for the Wind Gearbox Activities. Jan joined Hansen after an extensive career at transformer manufacturer Pauwels Trafo Belgium where he held the roles of Technology Development Manager and Business Manager.
Employees
In order to support Hansen's expansion, the Group added 562 people (net) in the financial year 2009, increasing the headcount by 30% from 1,894 at the end of March 2008 to 2,456 employees at the end of March 2009.
In Belgium, the number of employees increased from 1,605 people at the end of financial year 2008 to 1,777 at 31 March 2009 (net 172 additional employees or +11%). Today the Group has offices in Belgium, France, Sweden, Germany, the Netherlands, the United Kingdom, India, China, Australia, South Africa, the USA and Brazil.
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 manufacturing capacity to 7,300 MW over the financial year 2009.
Belgium - Lommel
In April 2008, the Company completed the expansion of its Lommel plant in Belgium, which commenced in October 2006 from 2,200 MW to 6,000 MW manufacturing capacity per year from April 2008 onwards. Combined with capacity in the Edegem plant in Belgium, this creates today a total manufacturing capacity in Belgium of 7,100 MW.
India - Coimbatore
The first wind turbine gearbox was delivered from the Indian factory in September 2008. In August of 2007 Hansen began the construction of a fully integrated manufacturing plant for wind turbine gearboxes in Coimbatore. This project consists of a new factory with a product range of gearboxes up to 3 MW. The annual manufacturing capacity is anticipated to reach 1,200 MW in financial year 2010 and 2,000 MW in financial year 2011. The Company has already invested EUR 162 million in this plant and has hired 400 employees in India.
China - Tianjin
The first wind turbine gearbox was delivered from the Chinese factory in March 2009. In September 2008, Hansen began the construction of a fully integrated manufacturing plant in the Beichen Hi-tech Industrial Park in Tianjin. The Company has so far invested EUR 51 million and the annual manufacturing capacity is anticipated to reach 1,600 MW in financial year 2010 and 2,000 MW in financial year 2011. In its first phase, the Tianjin factory will perform assembly and testing activities with imported components.
US
The Company sees a strong base for medium- to long term growth in North America with the stated plans from the new US Government for renewable energy expansion, as well as several European wind turbine manufacturers setting up local factories. This presents an attractive opportunity for Hansen to widen its geographic footprint and to continue meeting the needs of its customers.
Hansen will start in the financial year 2010 with a service centre for wind turbine gearboxes in the USA.
In parallel, the Company will continue to evaluate production opportunities in North America.
Manufacturing capacity expansion plan
As a result of the volatility in the market, Hansen has evaluated the optimal phasing of additional manufacturing capacity for the financial years 2010 to 2013. Based on the Company's order book, the ongoing discussions with existing and potential new customers and the market expectations, Hansen has reviewed its expansion plan for manufacturing capacity for wind turbine gearboxes.
Today, Hansen announces its reviewed expansion plan, in which several elements have been aligned to the expected market demand. Key elements of this phasing are:
1) Capacity in financial year 2013 of 14,300 MW is confirmed;
2) Delayed ramp-up of the production capacity in India and China for the financial years 2011 and 2012;
3) Total capital expenditure of EUR 730 million for the period 2007-2013 is identical to the previous plan.
The company further continues to review the optimization of its investments in view to improve the capex cost per MW-capacity.
Aftermarket Service Business
Over the last 30 years Hansen has supplied over 20,000 gearboxes for wind turbine applications. The size of this installed base creates a new and attractive potential to generate revenues and margins by offering repair, upgrades, inspection and preventive maintenance services. Hansen has established a dedicated service unit for its wind business that is working together with its customers to develop competitive business models based upon a well-balanced allocation of production resources between new products and aftermarket services.
OPERATIONS
Increased Capacity
The Company increased its sales in wind turbine gearboxes from 4,208 MW in the financial year 2008 to 5,956 MW in the financial year 2009. The average price per MW increased in the financial year 2009 to KEUR 86.4 per MW, from KEUR 81.0 in the previous year, mainly driven by the change in sales mix to higher value products and after market activities.
Hansen's direct labour costs as a percentage of revenue decreased to 5.7% for the financial year 2009, compared to 6.1% in the financial year 2008. This decrease was due to increased efficiency in the use of labour at the Lommel plant in Belgium as the Company increased production at this facility.
Variable works overheads, after the deduction of change in overheads in inventory, increased from 6.4% on revenue in financial year 2008 to 7.0% in the financial year 2009. This increase is the combined result of the positive effect of an improved absorption rate in the Lommel plant in Belgium, following the capacity addition at the Lommel plant, and the lower start-up efficiency in India and China.
Fixed works overheads as a percentage of sales increased to 10.7% on revenue compared to 10.1% in the previous financial year. The increase in fixed works overheads is entirely due to the increase in depreciations.
Finance and administrative costs
Finance and administrative costs increased from 4.9% in financial year 2008 to 6.1% in the financial year 2009. This resulted from costs linked to additional requirements as a public company and the general costs at the Indian and Chinese facilities.
Cost Control Plan
The financial crisis has impacted Hansen's customers triggering requests to reschedule orders with Hansen. The Company has reviewed each case and has accommodated requests where appropriate, in view of strengthening its long term customer relationships.
The Company believes that in the short term economic conditions will remain volatile and challenging.
In order to maintain flexibility, align its cost structure to this environment and support its EBITDA margins and cash flow, Hansen has actively pursued cost containment measures, including:
# Supply chain optimization;
# Temporary unemployment for blue collar employees (under Belgian legislation);
# Savings programmes on general expenses; and
# Inventory reduction.
In addition, the Company intends to align its white collar workforce to the economic environment, resulting in a potential white collar headcount reduction in Belgium of approximately 15%.
The Company will continue to explore and exploit opportunities to maintain an appropriate cost base.
ACTIVITIES IN THE FIELD OF RESEARCH AND DEVELOPMENT
In the financial year 2009, Hansen invested EUR 13.3 million in Research & Development, representing 2.2% of revenue and an increase of +33% compared to EUR 9.9 million in the financial year 2008. These costs are charged directly to the income statement. The Group's intention is to maintain the level of Research & Development investments at between 2.0% and 2.5% 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.
BALANCE SHEET
On 31 March 2009, the Company had a net financial debt position of EUR 124 million, calculated as cash and cash-equivalents minus long-term and short-term financial debts.
Inventories have increased to EUR 209 million at 31 March 2009, from EUR 136 million at 31 March 2008. This increase is driven by 1) the build up of security stock of critical components such as bearings, which were subject to an irregular supply in 2007 and in 2008, 2) the build up of components inventory for the new factories in India and China, 3) the rescheduling of orders in the last quarter of financial year 2009. Accounts receivables have increased to EUR 182 million at 31 March 2009, from EUR 88 million at 31 March 2008. This increase is caused by 1) overdue customer payments and 2) important year-end delivery of products, both in industrial and wind turbine gearboxes.
SHARE CAPITAL - Issuance of Warrants
Of the warrants that were issued under the Hansen Warrants Plan 2007 and the Employee Warrants Grant 2008 on 26 June 2008, a total of 2,072,300 warrants were effectively accepted in accordance with the respective plan rules. Subject to the conditions set out in the respective plans, the exercise of a warrant with grant date of 26 June 2008 will give the right to subscribe to one share of the Company at a subscription price of GBX 295. The exercise period of these warrants starts on 1 January 2012 and ends on 26 June 2013. The number of outstanding warrants at 31 March 2009 is 2,071,100 warrants. The exercise of all 2,071,100 warrants would thus result in a dilution of the existing shares in the Company of approximately 0.30%.
OUTLOOK
The Company remains confident in the projected medium and long term growth prospects of the international wind power market. Hansen's strong product offering and the quality of its customer base ensure that the Company remains well positioned in this market.
The Company expects that the volume and pricing pressure resulting from the difficulties experienced in the credit markets will continue to cause volatility in 2009.
For the financial year 2010, Hansen expects its overall markets to show low to moderate growth, and the company targets its full year revenue growth accordingly.
The financial information reported in this release is presented in € 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 2009 including the Auditor's Report will be available and published on the website of Hansen under the Investor Relations section on 27 May 2009. The financial information in this report is in compliance with IFRS.
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 3,800 MW per annum in the financial year 2007 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 +95.000m² 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 m² site in the Beichen Hi-tech Industrial park in Tianjin. Hansen has strong research and development operations to maintain its technological leadership and employs over 2,400 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.
Hansen Transmissions International NV announces its results for the 3 months ended 31 March 2009 and for the 12 months ended 31 March 2009.
HIGHLIGHTS FINANCIAL YEAR 2009
# Revenue growth of +45%
o Revenue of EUR 609 million, from EUR 421 million prior year
o Revenue from Wind turbine Gearboxes +52% to EUR 515 million
o Revenue from Industrial Gearboxes +15% to EUR 94 million
# EBITDA margin of 15.38%
o EBITDA1 of EUR 93.7 million from EUR 61.1 million last year, increase of 53%
o EBITDA margin of 15.38%, from 14.50% prior year
# Net profit growth of +44%
o Net Profit of EUR 45.0 million, from EUR 31.3 million last year
o Basic EPS2 of 0.067 EUR (+17%)
# Whilst contracted 2009 order book remains unchanged, Hansen is working with long term
customers to manage their requirements in line with current operating and credit
environment
# Capacity expansion plan to 14,300 MW in financial year 2013 on-track and fully-financed
# Ongoing developments in India and China position the Company well for the future
# Continuing to actively pursue cost measures to adapt to the current environment and support EBITDA margins and cash flow
1 EBITDA = earnings before interest, tax, depreciation & amortisation
2 Basic EPS = Basic Earnings Per Share calculated as Net Profit for the year divided by the weighted average number of ordinary shares
Ivan Brems, Hansen Transmissions's Chief Executive Officer, commented:
"Despite considerable economic turmoil during the year, Hansen has achieved significant progress. In the wind gearbox business, we have outperformed the overall wind market with 52% revenue growth. This success was driven by a solid first year of operations at the expanded factory in Lommel, Belgium. The delivery of our first gearboxes from the new factories in India and China has set the foundation for Hansen to build a strong position in these growth regions."
OUTLOOK
The Company remains confident in the projected medium and long term growth prospects of the international wind power market. Hansen's strong product offering and the quality of its customer base ensure that the Company remains well positioned in this market.
The Company expects that the volume and pricing pressure resulting from the difficulties experienced in the credit markets will continue to cause volatility in 2009.
For the financial year 2010, Hansen expects its overall markets to show low to moderate growth, and the company targets its full year revenue growth accordingly.
POSITION
WIND TURBINE GEARBOXES
Market update
In 2008, new installations of wind energy worldwide reached approximately 28.000 MW, representing a 42% increase in cumulative installations over 2007. Current forecasts by BTM (Source: BTM Consult Aps "International Wind Energy Development - World Market Update 2008" - March 2009) indicate an average annual growth rate of approximately 18% until 2013, with an annual additional capacity installed in 2013 of approximately 60.000 MW.
Hansen's Position
Hansen is one of the world leaders in multi-MW Wind turbine gearboxes. The Company has a dedicated and fully integrated production plant in Lommel, Belgium, which is designed to manufacture large pieces in serial production with a consistently high level of quality and reliability.
Through its expansion projects in India and China, Hansen is closely following the investment initiatives of its customers. In addition to providing proximity to the world's fastest growing markets, this also gives Hansen access to low cost production countries.
INDUSTRIAL GEARBOXES
In the traditional heavy industrial markets, such as mining, power generation and water treatment, orders remained strong in the first half of last financial year. The outlook for industrial gearboxes weakened in the second half of the financial year 2009 as a result of the global impact of the financial crisis on capital goods investments. Over the year, this activity has seen a solid revenue growth of 15% to EUR 94 million
Hansen's industrial gearboxes business is increasingly focusing on the development of close customer relationships, complementing its high quality product range with excellent service.
ORGANISATION
Management Committee
In August 2008, Hansen expanded its management committee with Cliff Dawson joining as Chief Operating Officer. Cliff joined Hansen from the automotive industry where he had a successful career in operations management with Ford, Visteon and most recently with Automotive Components Holdings Ltd. where he was Vice President of the Glass Operation.
Management Functions
A new management function has been created with Dr Jan Declercq joining in September 2008 as Director Business Development, Sales & Marketing for the Wind Gearbox Activities. Jan joined Hansen after an extensive career at transformer manufacturer Pauwels Trafo Belgium where he held the roles of Technology Development Manager and Business Manager.
Employees
In order to support Hansen's expansion, the Group added 562 people (net) in the financial year 2009, increasing the headcount by 30% from 1,894 at the end of March 2008 to 2,456 employees at the end of March 2009.
In Belgium, the number of employees increased from 1,605 people at the end of financial year 2008 to 1,777 at 31 March 2009 (net 172 additional employees or +11%). Today the Group has offices in Belgium, France, Sweden, Germany, the Netherlands, the United Kingdom, India, China, Australia, South Africa, the USA and Brazil.
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 manufacturing capacity to 7,300 MW over the financial year 2009.
Belgium - Lommel
In April 2008, the Company completed the expansion of its Lommel plant in Belgium, which commenced in October 2006 from 2,200 MW to 6,000 MW manufacturing capacity per year from April 2008 onwards. Combined with capacity in the Edegem plant in Belgium, this creates today a total manufacturing capacity in Belgium of 7,100 MW.
India - Coimbatore
The first wind turbine gearbox was delivered from the Indian factory in September 2008. In August of 2007 Hansen began the construction of a fully integrated manufacturing plant for wind turbine gearboxes in Coimbatore. This project consists of a new factory with a product range of gearboxes up to 3 MW. The annual manufacturing capacity is anticipated to reach 1,200 MW in financial year 2010 and 2,000 MW in financial year 2011. The Company has already invested EUR 162 million in this plant and has hired 400 employees in India.
China - Tianjin
The first wind turbine gearbox was delivered from the Chinese factory in March 2009. In September 2008, Hansen began the construction of a fully integrated manufacturing plant in the Beichen Hi-tech Industrial Park in Tianjin. The Company has so far invested EUR 51 million and the annual manufacturing capacity is anticipated to reach 1,600 MW in financial year 2010 and 2,000 MW in financial year 2011. In its first phase, the Tianjin factory will perform assembly and testing activities with imported components.
US
The Company sees a strong base for medium- to long term growth in North America with the stated plans from the new US Government for renewable energy expansion, as well as several European wind turbine manufacturers setting up local factories. This presents an attractive opportunity for Hansen to widen its geographic footprint and to continue meeting the needs of its customers.
Hansen will start in the financial year 2010 with a service centre for wind turbine gearboxes in the USA.
In parallel, the Company will continue to evaluate production opportunities in North America.
Manufacturing capacity expansion plan
As a result of the volatility in the market, Hansen has evaluated the optimal phasing of additional manufacturing capacity for the financial years 2010 to 2013. Based on the Company's order book, the ongoing discussions with existing and potential new customers and the market expectations, Hansen has reviewed its expansion plan for manufacturing capacity for wind turbine gearboxes.
Today, Hansen announces its reviewed expansion plan, in which several elements have been aligned to the expected market demand. Key elements of this phasing are:
1) Capacity in financial year 2013 of 14,300 MW is confirmed;
2) Delayed ramp-up of the production capacity in India and China for the financial years 2011 and 2012;
3) Total capital expenditure of EUR 730 million for the period 2007-2013 is identical to the previous plan.
The company further continues to review the optimization of its investments in view to improve the capex cost per MW-capacity.
Aftermarket Service Business
Over the last 30 years Hansen has supplied over 20,000 gearboxes for wind turbine applications. The size of this installed base creates a new and attractive potential to generate revenues and margins by offering repair, upgrades, inspection and preventive maintenance services. Hansen has established a dedicated service unit for its wind business that is working together with its customers to develop competitive business models based upon a well-balanced allocation of production resources between new products and aftermarket services.
OPERATIONS
Increased Capacity
The Company increased its sales in wind turbine gearboxes from 4,208 MW in the financial year 2008 to 5,956 MW in the financial year 2009. The average price per MW increased in the financial year 2009 to KEUR 86.4 per MW, from KEUR 81.0 in the previous year, mainly driven by the change in sales mix to higher value products and after market activities.
Hansen's direct labour costs as a percentage of revenue decreased to 5.7% for the financial year 2009, compared to 6.1% in the financial year 2008. This decrease was due to increased efficiency in the use of labour at the Lommel plant in Belgium as the Company increased production at this facility.
Variable works overheads, after the deduction of change in overheads in inventory, increased from 6.4% on revenue in financial year 2008 to 7.0% in the financial year 2009. This increase is the combined result of the positive effect of an improved absorption rate in the Lommel plant in Belgium, following the capacity addition at the Lommel plant, and the lower start-up efficiency in India and China.
Fixed works overheads as a percentage of sales increased to 10.7% on revenue compared to 10.1% in the previous financial year. The increase in fixed works overheads is entirely due to the increase in depreciations.
Finance and administrative costs
Finance and administrative costs increased from 4.9% in financial year 2008 to 6.1% in the financial year 2009. This resulted from costs linked to additional requirements as a public company and the general costs at the Indian and Chinese facilities.
Cost Control Plan
The financial crisis has impacted Hansen's customers triggering requests to reschedule orders with Hansen. The Company has reviewed each case and has accommodated requests where appropriate, in view of strengthening its long term customer relationships.
The Company believes that in the short term economic conditions will remain volatile and challenging.
In order to maintain flexibility, align its cost structure to this environment and support its EBITDA margins and cash flow, Hansen has actively pursued cost containment measures, including:
# Supply chain optimization;
# Temporary unemployment for blue collar employees (under Belgian legislation);
# Savings programmes on general expenses; and
# Inventory reduction.
In addition, the Company intends to align its white collar workforce to the economic environment, resulting in a potential white collar headcount reduction in Belgium of approximately 15%.
The Company will continue to explore and exploit opportunities to maintain an appropriate cost base.
ACTIVITIES IN THE FIELD OF RESEARCH AND DEVELOPMENT
In the financial year 2009, Hansen invested EUR 13.3 million in Research & Development, representing 2.2% of revenue and an increase of +33% compared to EUR 9.9 million in the financial year 2008. These costs are charged directly to the income statement. The Group's intention is to maintain the level of Research & Development investments at between 2.0% and 2.5% 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.
BALANCE SHEET
On 31 March 2009, the Company had a net financial debt position of EUR 124 million, calculated as cash and cash-equivalents minus long-term and short-term financial debts.
Inventories have increased to EUR 209 million at 31 March 2009, from EUR 136 million at 31 March 2008. This increase is driven by 1) the build up of security stock of critical components such as bearings, which were subject to an irregular supply in 2007 and in 2008, 2) the build up of components inventory for the new factories in India and China, 3) the rescheduling of orders in the last quarter of financial year 2009. Accounts receivables have increased to EUR 182 million at 31 March 2009, from EUR 88 million at 31 March 2008. This increase is caused by 1) overdue customer payments and 2) important year-end delivery of products, both in industrial and wind turbine gearboxes.
SHARE CAPITAL - Issuance of Warrants
Of the warrants that were issued under the Hansen Warrants Plan 2007 and the Employee Warrants Grant 2008 on 26 June 2008, a total of 2,072,300 warrants were effectively accepted in accordance with the respective plan rules. Subject to the conditions set out in the respective plans, the exercise of a warrant with grant date of 26 June 2008 will give the right to subscribe to one share of the Company at a subscription price of GBX 295. The exercise period of these warrants starts on 1 January 2012 and ends on 26 June 2013. The number of outstanding warrants at 31 March 2009 is 2,071,100 warrants. The exercise of all 2,071,100 warrants would thus result in a dilution of the existing shares in the Company of approximately 0.30%.
OUTLOOK
The Company remains confident in the projected medium and long term growth prospects of the international wind power market. Hansen's strong product offering and the quality of its customer base ensure that the Company remains well positioned in this market.
The Company expects that the volume and pricing pressure resulting from the difficulties experienced in the credit markets will continue to cause volatility in 2009.
For the financial year 2010, Hansen expects its overall markets to show low to moderate growth, and the company targets its full year revenue growth accordingly.
The financial information reported in this release is presented in € 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 2009 including the Auditor's Report will be available and published on the website of Hansen under the Investor Relations section on 27 May 2009. The financial information in this report is in compliance with IFRS.
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 3,800 MW per annum in the financial year 2007 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 +95.000m² 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 m² site in the Beichen Hi-tech Industrial park in Tianjin. Hansen has strong research and development operations to maintain its technological leadership and employs over 2,400 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.