PKC Group Oyj STOCK EXCHANGE RELEASE 20 April 2007 PKC GROUP INTERIM REPORT JANUARY-MARCH 2007 The PKC Group's net sales in the January-March period increased by 28.3% on the previous year to EUR 70.0 million (54.5 million in Jan.-Mar. 2006). Operating profit was EUR 6.5 million (8.2 million) and profit before taxes was EUR 6.1 million (8.4 million). The diluted earnings per share were EUR 0.24 (0.33). MIKA KARI, PRESIDENT AND CEO: “The business acquisition in North America and growth in demand led to a substantial increase in our net sales. Operative profitability maintained at a good level despite the increased prices of raw materials and the start-up costs of new factories, which burdened the operational result in comparison with the comparison period. With our key electronics customers increasing their operations in Asia, we plan to start an electronics business in China during the current year. To complement our cost-effective production in Europe, we will be able to offer similar contract manufacturing services in China as well in the future.” OPERATING ENVIRONMENT The commercial vehicle market grew over the same period last year. The Group's deliveries to the truck industry grew significantly during the first three months, mirroring our customers' volume growth. The sales of wiring harnesses for other vehicles and machinery grew due to the acquisition of the North American operations and larger orders from customers. The sales of wiring harnesses and cabling to customers in the telecommunications and automation industries fell from the same period last year. The competitive situation in the electronics design and contract manufacturing business has remained stiff, forcing suppliers to adopt cost-effective operating models and to serve customers flexibly. Demand for the Group's electronics contract design and manufacturing had a positive trend during the report period. NET SALES AND FINANCIAL PERFORMANCE January-March 2007 Consolidated net sales during the report period amounted to EUR 70.0 million (54.5 million), an increase of 28.3% on the previous year. Consolidated operating profit totalled EUR 6.5 million (8.2 million), amounting to 9.3% of net sales (15.0%). Depreciation amounted to EUR 2.1 million (1.5 million). Financial income and expenses were EUR 0.4 million negative (0.2 million positive). Profit before taxes was EUR 6.1 million (8.4 million). Profit for the report period was EUR 4.3 million (5.8 million). The diluted earnings per share were EUR 0.24 (0.33). Net sales generated by the Wiring Harnesses business during the report period totalled EUR 58.1 million (43.4 million), an increase of 33.9% on the comparison period. Its share of consolidated net sales was 83.0% (79.6%). The growth in net sales can be attributed to strong demand for automotive industry products and additional net sales generated by the North American operations. The Wiring Harnesses business segment reported an operating profit of EUR 4.9 million (6.7 million), or 8.5% of the segment's net sales (15.4%). The Electronics business segment saw its net sales grow by 6.2% to EUR 11.8 million (11.1 million), accounting for 17.0% of consolidated net sales (20.4%). The Electronics business segment posted an operating profit of EUR 1.5 million (1.5 million), or 12.8% of the segment's net sales (13.3%). The Group's net sales grew in both business segments. The world market price of copper was considerably higher than during the same period last year. The Pskov and Suzhou factories prepared for increasing their production volume. The integration of the acquired North American companies proceeded and operations in the Nogales factory's extension commenced during the first quarter. BALANCE SHEET AND FINANCING Consolidated total assets at 31 March 2007 stood at EUR 156.0 million (124.0 million). Interest-bearing liabilities totalled EUR 48.2 million at the close of the report period (25.3 million). The Group's equity ratio was 44.2% (50.7%). Net liabilities totalled EUR 42.2 million (15.8 million) and gearing was 61.2% (25.2%). Inventories amounted to EUR 36.2 million (28.1 million). Current receivables totalled EUR 70.4 million (51.3 million). The increase in inventories and receivables was mainly a result of the acquisition of the North American operations and volume growth. Cash flows after investing activities were EUR 4.8 million negative (4.7 million positive). Cash in hand and at bank amounted to EUR 6.1 million (9.5 million). In order to ensure financing flexibility, PKC has credit facilities available. CAPITAL EXPENDITURES During the review period, the Group's gross capital expenditures totalled EUR 3.3 million (2.8 million), amounting to 4.7% of net sales (5.1%). Capital expenditures consisted mainly of investments in production machinery and equipment. RESEARCH & DEVELOPMENT Research and development expenditure totalled EUR 1.1 million (1.1 million), representing 1.6% (2.0%) of consolidated net sales. At the end of the report period, 79 (66) people were employed in product development. PERSONNEL During the report period, the Group had an average payroll of 4,740 employees (3,623). The Group's staff at the end of the report period numbered 4,831 employees (3,593), of whom 4,154 (2,908) worked abroad and 677 (685) in Finland. The increase in the number of personnel was due to the acquisition of the North American operations and growth in production volumes in units outside Finland. QUALITY AND THE ENVIRONMENT The Group's Wiring Harnesses business has mostly been certified under the ISO/TS 16949, ISO 9001 and ISO 14001 standards. The new factories in China and Russia are preparing for certifying their operations in accordance with the ISO/TS 16949 and ISO 14001 standards. The Electronics business is certified in accordance with the ISO 9001 standard. PKC has begun the integration of its North American operations into the Group's environmental systems. The quality of operations is being improved in line with the Group's quality strategy and action plans based on it. In accordance with its environmental policy, PKC is committed to constantly reducing the environmental impacts of its operations. ANNUAL GENERAL MEETING The Annual General Meeting on 29 March 2007 passed a resolution to pay a dividend of EUR 0.45 per share, or a total of about EUR 8.0 million. The dividend was paid out on 12 April 2007. The Annual General Meeting re-elected Matti Eestilä, Jaakko Niemelä, Endel Palla, Matti Ruotsala, Harri Suutari and Jyrki Tähtinen to seats on the Board of Directors. Olli Pohjanvirta was elected to the Board of Directors as a new member. At its organisational meeting, the Board of Directors elected Harri Suutari Chairman and Jyrki Tähtinen Vice Chairman. The Authorised Public Accounting Firm Ernst & Young Oy will continue as the company's auditor, with Rauno Sipilä, Authorised Public Accountant, acting as the principal auditor. In accordance with the proposals of the Board of Directors, the Annual General Meeting also resolved to authorise the Board to decide on one or more share issues, on granting extraordinary rights in accordance with Chapter 10, Section 1 of the Companies Act, and on all the terms and conditions thereof. The authorisation shall remain in force for 5 years after the resolution of the Annual General Meeting. MANAGEMENT CHANGES CFO Marko Karppinen's employment with PKC Group Oyj has ended on 31 March 2007. Sami Klemola (36), M.Sc. (Admin.), LL.M., will take over the CFO's tasks as from 1 May 2007. His responsibilities will include Group finance and administration. SHARE TURNOVER AND SHAREHOLDERS PKC Group Oyj's share turnover on the Helsinki Stock Exchange from 1 January to 31 March 2007 was 4,020,843 shares (3,546,459 shares), representing 22.6% of the average number of shares (20.0%). Shares were traded to a total value of EUR 43.8 million (40.8 million). The low during the report period was EUR 9.40 (10.97) and the high was EUR 12.40 (12.21). The closing price on the last trading day of the report period was EUR 9.40 (11.89) and the average price during the period was EUR 10.86 (11.51). The company's market capitalisation at 31 March 2007 was EUR 167.1 million (210.6 million). Shares held by Board members, their closely associated persons, and controlled corporations accounted for 3.1% (5.1%) of the total number of shares at the end of the report period. PKC Group Oyj had 6,184 shareholders (4,825) at the end of the period. The proportion of shares held by foreigners and by way of nominee registrations at 31 March 2007 was 32.7% of the shares outstanding (25.6%). SHARE CAPITAL The Board of Directors has been granted authorisation by the Annual General Meeting on 29 March 2007 to decide on one or more share issues, on granting extraordinary rights in accordance with Chapter 10, Section 1 of the Companies Act, and on all the terms and conditions thereof. The maximum total number of shares that can be issued or subscribed for based on the authorisation is 3,500,000. The authorisation also gives the Board the right to decide on a directed share issue. The authorisation shall remain in force for 5 years after the Annual General Meeting's resolution. At the Board's discretion, the authorisation may be used for financing mergers and acquisitions, co-operating with other companies or implementing other similar arrangements or strengthening the company's financing and capital structure etc. The Board of Directors does not have a valid authorisation to buy back the company's own shares and the company does not have own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme, according to which the maximum total number of stock options to be issued is 697,500 and they are divided into A, B and C warrants. The share subscription period shall take place between 2009 and 2013. The share subscription price for stock options shall be the volume-weighted average quotation of the PKC Group Oyj share on the Helsinki Stock Exchange with dividend adjustments as defined in the stock option terms (at the end of the report period EUR 11.54 for 2006A and 2006B warrants). As a result of share subscriptions with the 2006 stock options, the share capital of PKC Group Oyj may be increased by a maximum total of 697,500 new shares and EUR 234,673.67. Stock options 2006 are subject to a share ownership plan. Key personnel are obliged to subscribe for company shares with 20 per cent of the gross income earned from stock options and to own these shares for two years. The company's President and CEO is obliged to own these shares for the duration of his service. OUTLOOK FOR THE FUTURE The commercial vehicle market is expected to grow over last year. Thanks to good demand of products, delivery volumes to the truck industry are estimated to have a favourable trend. Deliveries of wiring harnesses for other vehicles and machinery are forecast to grow. Deliveries of wiring harnesses to telecommunications and automation industries are estimated to remain at the same level as before. The full-year net sales of the Wiring Harnesses business are expected to grow even if the additional net sales from the companies acquired in North America are not taken into account. The electronics contract design and manufacturing market is estimated to maintain its present level, with the competitive situation remaining tough. The net sales of the Electronics business are expected to grow over the previous year. The PKC Group is preparing to start the procurement and contract manufacturing of electronics components in China. Consolidated net sales are expected to grow significantly over the last year's figures. Despite the uncertainty caused by major fluctuations in the prices of raw materials, full-year relative profitability is estimated to maintain its good level. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT (1000 | 1-3/07 | 1-3/06 | 1-12/06 | | EUR) | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | NET SALES | 69,967 | 54,527 | 228,928 | -------------------------------------------------------------------------------- | Operating expenses | 61,410 | 44,889 | 198,369 | -------------------------------------------------------------------------------- | Depreciation | 2,085 | 1,455 | 6,310 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 6,473 | 8,183 | 24,249 | -------------------------------------------------------------------------------- | Financial income and expenses | -380 | 189 | -1,498 | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 6,093 | 8,372 | 22,751 | -------------------------------------------------------------------------------- | Direct taxes | -1,719 | -2,490 | -7,044 | -------------------------------------------------------------------------------- | PROFIT BEFORE MINORITY INTEREST | 4,374 | 5,883 | 15,708 | -------------------------------------------------------------------------------- | Minority interest | -53 | -61 | -155 | -------------------------------------------------------------------------------- | PROFIT FOR THE REPORT PERIOD | 4,321 | 5,822 | 15,552 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.24 | 0.33 | 0.88 | -------------------------------------------------------------------------------- | Earnings per share (EPS), diluted, | 0.24 | 0.33 | 0.87 | | EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (1000 | 3/07 | 3/06 | 12/06 | | EUR) | | | | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | 43,338 | 35,090 | 43,647 | -------------------------------------------------------------------------------- | Intangible assets | 9,353 | 3,834 | 9,053 | -------------------------------------------------------------------------------- | Tangible assets | 31,532 | 29,308 | 31,468 | -------------------------------------------------------------------------------- | Available-for-sale investments | 15 | 15 | 15 | -------------------------------------------------------------------------------- | Deferred tax assets | 2,228 | 1,832 | 2,486 | -------------------------------------------------------------------------------- | Receivables | 208 | 100 | 625 | -------------------------------------------------------------------------------- | Current assets | 112,642 | 88,928 | 107,369 | -------------------------------------------------------------------------------- | Inventories | 36,191 | 28,121 | 36,589 | -------------------------------------------------------------------------------- | Receivables | 70,401 | 51,299 | 62,720 | -------------------------------------------------------------------------------- | Cash in hand and at banks | 6,050 | 9,508 | 8,060 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 155,980 | 124,018 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | Shareholders equity | 68,909 | 62,859 | 72,544 | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,960 | 5,983 | -------------------------------------------------------------------------------- | Other equity | 62,228 | 56,237 | 65,915 | -------------------------------------------------------------------------------- | Minority interest | 699 | 663 | 646 | -------------------------------------------------------------------------------- | Long-term liabilities | 28,374 | 15,038 | 19,717 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 28,122 | 14,439 | 18,947 | -------------------------------------------------------------------------------- | Non interest-bearing liabilities | | 221 | 112 | -------------------------------------------------------------------------------- | Deferred tax liabilities | 251 | 378 | 658 | -------------------------------------------------------------------------------- | Short-term liabilities | 58,697 | 46,121 | 58,754 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 20,110 | 10,891 | 26,068 | -------------------------------------------------------------------------------- | Non interest-bearing liabilities | 38,587 | 35,230 | 32,686 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | 155,980 | 124,018 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP CASH FLOW STATEMENT | 1-3/07 | 1-3/06 | 1-12/06 | | | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | Cash flows from operating activities | | | | -------------------------------------------------------------------------------- | Cash flows from operations before | | | | -------------------------------------------------------------------------------- | financial income and expenses and | 1,054 | 9,412 | 19,074 | | taxes | | | | -------------------------------------------------------------------------------- | Financial income and expenses and | -2,521 | -1,554 | -9,094 | | taxes | | | | -------------------------------------------------------------------------------- | NET CASH FROM OPERATING ACTIVITIES | -1,467 | 7,858 | 9,980 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing activities | | | | -------------------------------------------------------------------------------- | Capital expenditure | -2,533 | -3,128 | -9,237 | -------------------------------------------------------------------------------- | Proceeds from sale of assets | 539 | | 537 | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | -1,298 | 0 | -9,985 | -------------------------------------------------------------------------------- | NET CASH USED IN INVESTING | -3,292 | -3,128 | -18,685 | | ACTIVITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financial activities | | | | -------------------------------------------------------------------------------- | Proceeds from issuance of share | 0 | 0 | 441 | | capital | | | | -------------------------------------------------------------------------------- | Change of loans | 2,749 | -111 | 19,502 | -------------------------------------------------------------------------------- | Dividends paid | 0 | 0 | -8,068 | -------------------------------------------------------------------------------- | NET CASH USED IN FINANCIAL | 2,749 | -111 | 11,876 | | ACTIVITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET INCREASE/DECREASE IN CASH AND | -2,010 | 4,618 | 3,171 | | CASH EQUIVALENTS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FINANCIAL INDICATORS | 1-3/07 | 1-3/06 | 1-12/06 | | | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 69,967 | 54,527 | 228,928 | -------------------------------------------------------------------------------- | Operating profit, 1000 EUR | 6,473 | 8,183 | 24,249 | -------------------------------------------------------------------------------- | % of net sales | 9.3 | 15.0 | 10.6 | -------------------------------------------------------------------------------- | Profit before taxes, 1000 EUR | 6,093 | 8,372 | 22,751 | -------------------------------------------------------------------------------- | % of net sales | 8.7 | 15.4 | 9.9 | -------------------------------------------------------------------------------- | Net profit for the period, 1000 EUR | 4,321 | 5,822 | 15,552 | -------------------------------------------------------------------------------- | % of net sales | 6.2 | 10.7 | 6.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 24.7 | 36.8 | 22.8 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 22.1 | 39.7 | 24.1 | -------------------------------------------------------------------------------- | Gearing, % | 61.2 | 25.2 | 50.9 | -------------------------------------------------------------------------------- | Equity ratio, % | 44.2 | 50.7 | 48.0 | -------------------------------------------------------------------------------- | Current ratio | 1.9 | 1.9 | 1.8 | -------------------------------------------------------------------------------- | Gross capital expenditure, 1000 EUR | 3,271 | 2,771 | 20,012 | -------------------------------------------------------------------------------- | % of net sales | 4.7 | 5.1 | 8.7 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 1,141 | 1,106 | 4,906 | -------------------------------------------------------------------------------- | % of net sales | 1.6 | 2.0 | 2.1 | -------------------------------------------------------------------------------- | Personnel average | 4,740 | 3,623 | 4,013 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP PER-SHARE KEY FIGURES | 1-3/07 | 1-3/06 | 1-12/06 | | | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.24 | 0.33 | 0.88 | -------------------------------------------------------------------------------- | Earnings per share (EPS),diluted, | 0.24 | 0.33 | 0.87 | | EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | 3.84 | 3.51 | 4.04 | -------------------------------------------------------------------------------- | Share price at close of period, EUR | 9.40 | 11.89 | 12.25 | -------------------------------------------------------------------------------- | Lowest share price, EUR | 9.40 | 10.97 | 10.02 | -------------------------------------------------------------------------------- | Highest share price, EUR | 12.40 | 12.21 | 14.08 | -------------------------------------------------------------------------------- | Average share price, EUR | 10.86 | 11.51 | 11.69 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 shares | 4,021 | 3,546 | 11,403 | -------------------------------------------------------------------------------- | Turnover in shares per (share issue | 22.6 | 20.0 | 64.2 | | adjusted) share capital, % | | | | -------------------------------------------------------------------------------- | Average number of shares, 1000 | 17,782 | 17,709 | 17,756 | | shares | | | | -------------------------------------------------------------------------------- | Average number of shares, diluted, | 17,748 | 17,738 | 17,774 | | 1000 shares | | | | -------------------------------------------------------------------------------- | Shares at end of period, 1000 shares | 17,782 | 17,713 | 17,782 | -------------------------------------------------------------------------------- | Market capitalisation , 1000 EUR | 167,146 | 210,613 | 217,824 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT INFORMATION | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY BUSINESS SEGMENTS | 1-3/07 | 1-3/06 | 1-12/06 | | | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | 58,132 | 43,451 | 182,161 | -------------------------------------------------------------------------------- | Net sales to other segments, 1000 | -11 | -33 | -155 | | EUR | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, total, 1000 EUR | 58,121 | 43,417 | 182,006 | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | 83.0 | 79.6 | 79.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 12,019 | 11,265 | 48,034 | -------------------------------------------------------------------------------- | Net sales to other segments, 1000 | -173 | -155 | -1,112 | | EUR | | | | -------------------------------------------------------------------------------- | Electronics, total, 1000 EUR | 11,846 | 11,110 | 46,922 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 17.0 | 20.4 | 20.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | 69,967 | 54,527 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT BY BUSINESS | | | | | SEGMENTS | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | 4,940 | 6,684 | 17,899 | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | 8.5 | 15.4 | 9.8 | -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 1,533 | 1,499 | 6,350 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 12.8 | 13.3 | 13.2 | -------------------------------------------------------------------------------- | Group Total | 6,473 | 8,183 | 24,249 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY GEOGRAPHICAL SEGMENTS | 1-3/07 | 1-3/06 | 1-12/06 | | (1000 EUR) | 3 | 3 | 12 | | | mon. | mon. | mon. | -------------------------------------------------------------------------------- | Finland | 12,487 | 11,701 | 47,824 | -------------------------------------------------------------------------------- | Other Europe | 39,805 | 32,328 | 128,484 | -------------------------------------------------------------------------------- | North America | 8,147 | 1,792 | 16,534 | -------------------------------------------------------------------------------- | South America | 7,804 | 7,074 | 29,149 | -------------------------------------------------------------------------------- | Other Countries | 1,724 | 1,633 | 6,937 | -------------------------------------------------------------------------------- | Total | 69,967 | 54,527 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF | | | | | | | | EQUITY (MILLION EUR) | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | | | | | | -------------------------------------------------------------------------------- | B = Share premium | | | | | | | | account | | | | | | | -------------------------------------------------------------------------------- | C = Fair value and | | | | | | | | other reserves | | | | | | | -------------------------------------------------------------------------------- | D = Retained earnings | | | | | | | -------------------------------------------------------------------------------- | E = Minority interest | | | | | | | -------------------------------------------------------------------------------- | F = Total equity | | | | | -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.5 | 0.3 | 53.8 | 0.6 | 65.0 | | 1.1.2006 | | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 0 | 0 | 0 | 5.8 | 0.1 | 5.9 | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Other changes | 0 | -0.1 | -0.1 | 0.2 | 0 | 0.0 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.4 | 0.2 | 51.8 | 0.7 | 62.9 | | 31.3.2006 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | | 1.1.2007 | | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 0 | 0 | 0 | 4.3 | 0.1 | 4.4 | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Share-based payments | 0 | 0 | 0 | 0.1 | 0 | 0.1 | -------------------------------------------------------------------------------- | Translation | 0 | 0 | 0 | -0.1 | 0 | -0.1 | | differences | | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 57.2 | 0.7 | 68.9 | | 31.3.2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. GROUP CONTINGENT | 3/07 | 3/06 | 12/06 | | | | | LIABILITIES AT END OF | | | | | | | | PERIOD (1000 EUR) | | | | | | | -------------------------------------------------------------------------------- | Leasing liabilities | 6,906 | 6,355 | 6,911 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for derivate | | | | | | | instruments | | | | | | -------------------------------------------------------------------------------- | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | Nominal values | | | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | | | -------------------------------------------------------------------------------- | Forward contracts | 6,248 | 6,569 | 5,917 | | | | -------------------------------------------------------------------------------- | Option agreements | | | | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | | | | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | | | | -------------------------------------------------------------------------------- | Total | 6,248 | 6,569 | 5,917 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | | | -------------------------------------------------------------------------------- | Forward contracts | -134 | -18 | -38 | | | | -------------------------------------------------------------------------------- | Option agreements | | | | | | | -------------------------------------------------------------------------------- | Call | 0 | 0 | 0 | | | | -------------------------------------------------------------------------------- | Put | 0 | 0 | 0 | | | | -------------------------------------------------------------------------------- | Total | -134 | -18 | -38 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Currency derivates are used only in hedging currency risks. PKC Group does | | not apply hedge accounting to derivate instruments in accordance with IAS | | 39. Fair values of the derivates are entered directly in the income | | statement. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 10-12/0 | 1-3/06 | 4-6/06 | 7-9/06 | 10-12/06 | 1-3/07 | | FIGURES, | 5 | 3 | 3 | 3 | 3 mon. | 3 mon. | | GROUP | 3 | mon. | mon. | mon. | | | | | mon. | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 | 52,139 | 54,527 | 54,813 | 53,994 | 65,594 | 69,967 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 7,371 | 8,183 | 6,838 | 5,316 | 3,912 | 6,473 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 14.1 | 15.0 | 12.5 | 9.8 | 6.0 | 9.3 | -------------------------------------------------------------------------------- | Profit before | 7,157 | 8,372 | 6,202 | 5,174 | 3,003 | 6,093 | | taxes, 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 13.7 | 15.4 | 11.3 | 9.6 | 4.6 | 8.7 | -------------------------------------------------------------------------------- | Equity ratio, % | 55.6 | 50.7 | 56.0 | 49.3 | 48.0 | 44.2 | -------------------------------------------------------------------------------- | Earnings per share | | | | | | | | (EPS), | | | | | | | -------------------------------------------------------------------------------- | diluted, EUR | 0.27 | 0.33 | 0.22 | 0.21 | 0.11 | 0.24 | -------------------------------------------------------------------------------- | Shareholders | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | per share, EUR | 3.64 | 3.51 | 3.75 | 3.96 | 4.04 | 3.84 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, | | | | | | | | WIRING HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 | 41,812 | 43,417 | 42,779 | 42,163 | 53,647 | 58,121 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 5,979 | 6,684 | 5,081 | 3,342 | 2,792 | 4,940 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 14.3 | 15.4 | 11.8 | 7.9 | 5.2 | 8.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, | | | | | | | | ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 | 10,317 | 11,110 | 12,035 | 11,831 | 11,946 | 11,846 | | EUR | | | | | | | -------------------------------------------------------------------------------- | Operating profit, | 1,392 | 1,499 | 1,757 | 1,975 | 1,120 | 1,533 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 13.1 | 13.3 | 14.2 | 16.7 | 9.4 | 12.8 | -------------------------------------------------------------------------------- The presented figures are unaudited. The interim report has been prepared in accordance with International Financial Reporting Standards (IFRS). All future estimates and forecasts presented in this stock exchange release are based on the best current knowledge of the company's management. The estimates and forecasts contain certain elements of risk and uncertainty which, if they materialise, may alter the outlook for the future presented in this report. The main elements of uncertainty are connected with, among others, the general economical situation, the operating environment and the industry's trend as well as the success of the Group's strategy. PKC GROUP OYJ Board of Directors Mika Kari President and CEO For additional information, contact: Mika Kari, President and CEO, PKC Group Oyj, +358 20 1752 350 PRESS CONFERENCE A press conference on the interim report will be arranged for analysts and investors at 1.00 p.m. today, 20 April 2007, at the World Trade Center, Marskin Sali (Marski Hall), Aleksanterinkatu 17, Helsinki. DISTRIBUTION Helsinki Stock Exchange Main media www.pkcgroup.com The PKC Group offers design and contract manufacturing services for wiring harnesses, cabling and electronics. The Group has production facilities in Finland, Brazil, China, Mexico, Estonia and Russia, and it employs about 4,800 people. The Group had net sales of EUR 229 million in 2006. PKC Group Oyj is listed on the Helsinki Stock Exchange.