Elcoteq SE Stock Exchange Release July 25, 2007, at 9.00 am (EET)
ELCOTEQ SE'S INTERIM REPORT JANUARY - JUNE 2007 (unaudited)
Elcoteq's second-quarter net sales rose on the first quarter of the current year
and totaled 968.3 million euros (1,029.6 million euros in April - June 2006).
Operating income in the second quarter was -19.0 million euros (12.2) and,
excluding restructuring costs, -15.9 million euros. Balancing of the customer
portfolio continued and sales to almost all the most important customers grew,
and the Communications Networks business area's sales and result developed
positively.
April - June
Second-quarter net sales amounted to 968.3 million euros (1,029.6 April - June
2006).
Operating income was -19.0 million euros (12.2). Operating income included
restructuring costs totaling 3.1 million euros, excluding which operating income
was -15.9 million euros.
Income before taxes was -25.1 million euros (7.0).
Earnings per share (EPS) were -0.64 euros (0.14).
Rolling 12-month return on capital employed (ROCE) was -9.4% (15.7%).
Cash flow after investing activities was -21.0 million euros (-71.5).
Gearing was 0.8 (0.6).
January - June
Net sales between January and June were 1,920.8 million euros (2,010.7 million
euros between January and June 2006).
Operating income was -71.3 million euros (20.5). Operating income included
restructuring costs totaling 33.1 million euros, excluding which operating
income was -38.2 million euros.
Income before taxes was -84.1 million euros (9.9).
Earnings per share (EPS) were -2.12 euros (0.21).
Cash flow after investing activities was -61.9 million euros (-57.3).
Interest-bearing net debt was 192.1 million euros (165.4).
This interim report has been prepared using IFRS recognition and measuring
principles. The tables have been prepared in compliance with the IAS 34
requirements approved by the EU.
April - June
The Group's net sales in the second quarter showed a slight increase on the
first quarter, totaling 968.3 million euros (1,029.6 in the second quarter of
2006 and 952.5 million euros in the first quarter of 2007). Net sales of the
Communications Networks business area rose by roughly 17% compared to the first
quarter, due in particular to growth in manufacturing volumes in Asia-Pacific.
Net sales of the Terminal Products business area decreased by about 2% as mobile
phone deliveries to Nokia declined in Europe and the Americas. Deliveries to
other major terminal products customers, however, were higher than in the first
quarter.
Operating income was -19.0 million euros (12.2). Operating income includes
restructuring costs associated with Elcoteq's action plan totaling 3.1 million
euros, excluding which operating income was -15.9 million euros. As the company
expected, operating income improved compared to the first quarter during which
comparable operating income was -22.3 million euros. The main reason for this
positive trend was an improvement in Communications Networks' profitability,
which was due in particular to growth in manufacturing volumes. Terminal
Products' operating income before restructuring costs remained at the first
quarter's level because of continuing production problems in Mexico and weaker
than expected manufacturing volumes especially in Europe. The company did not
entirely gain the planned cost savings.
The Group's net financial expenses amounted to 6.1 million euros. Income before
taxes was -25.1 million euros (7.0) and net income was -20.6 million euros
(4.4). Earnings per share were -0.64 euros (0.14).
Gross capital expenditures on fixed assets in the second quarter totaled 13.4
million euros (30.1) or 1.4% of net sales. A large proportion of investments was
allocated to testing equipment. Depreciation was 19.9 million euros (20.1).
Cash flow after investing activities in the second quarter was -21.0 million
euros (-71.5). Cash flow was weakened by, among other things, the postponement
to the third quarter of value-added tax rebates arising from the new invoicing
model adopted in Europe from May 1, which increased the Group's net debt at the
end of the review period by almost 23 million euros. The solvency ratio was
20.9% (25.0%) and gearing was 0.8 (0.6). The cash flow received by the Group
from sold accounts receivable amounted to 190.9 million euros at the end of June
(170.3 million euros at the end of March 2007).
At the end of June Elcoteq had unused but immediately available credit limits
totaling 295.8 million euros (294.9 million euros at the end of March 2007),
which included a syndicated loan with a committed credit limit of 230 million
euros. Commercial papers issued by the Group had a total nominal value of 19.0
million euros on June 30, 2007.
January - June
Net sales between January and June decreased slightly on the same period last
year, standing at 1,920.8 million euros (2,010.7). Operating income was -71.3
million euros (20.5). Operating income includes 33.1 million euros in
restructuring costs, and therefore operating income excluding restructuring
costs was -38.2 million euros. Income before taxes was -84.1 million euros
(9.9). Earnings per share were -2.12 euros (0.21).
Gross capital expenditures on fixed assets between January and June amounted to
24.6 million euros (46.1) or 1.3% of net sales. Depreciation was 40.0 million
euros (38.9).
Personnel
At the end of June Elcoteq employed 23,847 people (22 617): 489 (840) in Finland
and 23,358 (21,777) elsewhere. The geographical distribution of the workforce
was as follows: Europe 10,889 (11,079), Asia-Pacific 8,125 (7,971) and the
Americas 4,833 (3,567). The average number of Elcoteq employees on the company's
direct payroll between January and June was 19,334 (16,154).
Personnel negotiations concerning the Lohja manufacturing plant and the
company's NPI (new product introduction) organization were concluded at the
beginning of April. As a result of the negotiations the company made 242
employees redundant on production and financial grounds and decided to close its
Lohja plant. Production at the plant ceased at the end of June.
Business Areas
Elcoteq has two business areas: Terminal Products and Communications Networks.
In the second quarter Terminal Products contributed 78% (81%) and Communications
Networks 22% (19%) of the Group's net sales.
Sales to companies within the Ericsson and Nokia groups during the second
quarter amounted to 53% (69%) of Elcoteq's total net sales. These figures do not
include business activities with Sony Ericsson. Business with Nokia Siemens
Networks is reported as part of the Nokia group. The above figures are not
entirely comparable owing to Siemens' communications network business, which has
been part of Nokia Siemens Networks since April 1.
Net sales of the Terminal Products business area between April and June totaled
752.0 million euros (837.6), down by roughly 10% on the same period last year
and about 2% lower than in the first quarter this year. The segment's operating
income was -11.4 million euros (20.7) or -1.5% of its net sales. Operating
income excluding restructuring costs was -8.4 million euros.
Net sales of the Communications Networks business area between April and June
were 216.4 million euros (192.0), an increase of approximately 13% on the same
period last year and about 17% on the first quarter this year. The segment's
operating income was 2.2 million euros (3.2) or 1.0% of its net sales. Operating
income excluding restructuring costs was 2.5 million euros.
Geographical Areas (GAs)
Elcoteq has three geographical areas: Europe, Asia-Pacific and Americas.
Elcoteq's second-quarter net sales were derived from these areas as follows:
Europe 50% (58%), Asia-Pacific 28% (27%) and Americas 22% (15%).
GA Europe's net sales showed a decrease of roughly 20% compared to the same
period last year and totaled 481.0 million euros (599.7). Asia-Pacific's net
sales remained at last year's level, amounting to 272.1 million euros (272.8)
and net sales of Americas increased by 37% on the same period last year to 215.2
million euros (157.1).
Compared to the first quarter Europe's net sales declined by approximately 5%,
Asia-Pacific's net sales grew by roughly 18% and Americas' net sales remained at
the first quarter's level. The increase in Asia-Pacific's net sales was due to
good manufacturing volumes in both Communications Networks and Terminal
Products, while the decrease in Europe's net sales was mainly attributable to
lower than earlier mobile phone manufacturing volumes.
Divestments
In April Elcoteq SE and Aspocomp Group Oyj concluded an agreement under which
funds managed by Conor Venture Partners, Index Ventures and Northzone Ventures
became Imbera's new financiers and principal owners. Elcoteq retained a minority
stake in Imbera, holding roughly 15% of Imbera's share capital. Elcoteq
previously held 50% of Imbera's share capital. The restructuring of Imbera's
ownership had no impact on Elcoteq's result.
In June Elcoteq agreed on the sale of real estate company Kiinteistö Oy
Piiharju, and the manufacturing facility in the Gunnarla district of Lohja,
Finland owned by this company.
Progress with Action Plan
As part of its action plan to improve profitability and competitiveness, Elcoteq
has initiated measures to rationalize its operations in Europe and the Americas,
and has announced its plan to close its manufacturing plants in Lohja, Finland,
and Juarez, Mexico. Production at the Lohja plant has already ceased. The Juarez
facility will be run down during 2007 and production for its customers will be
moved to Elcoteq's Monterrey plant in Mexico and to China.
The one-time restructuring costs related to the action plan amount to
approximately 35 million euros, of which 33.1 million euros were recognized in
the January-June accounts.
Changes in Elcoteq's Management
Mr Anssi Korhonen, a member of Elcoteq Management Team (EMT), was appointed
President of Elcoteq's Asia-Pacific geographical area in May. He also continues
in his earlier role as Senior Vice President of Product Development Services.
Mr Mike Liang, head of Elcoteq's human resources in Asia-Pacific, was appointed
Senior Vice President, Human Resources of Elcoteq Group and a member of the EMT
in May.
Mr Mikko Puolakka, Controller of Elcoteq's geographical area Europe, was
appointed Chief Financial Officer (CFO) of Elcoteq Group and a member of the EMT
with effect from August 1, 2007.
Short-Term Risks and Uncertainty Factors
The most important short-term challenges with respect to Elcoteq's business
operations concern the company's ability to improve its cost structure and thus
its profitability sufficiently fast as market conditions become increasingly
tight, coupled with its ability to offer service packages corresponding to
customer demand and needs.
Shares and Shareholders
On June 30, 2007 the company had 32,602,919 shares divided into 22,025,919
series A shares and 10,577,000 series K shares. All the K shares are held by the
company's three principal owners.
Elcoteq had 10,886 shareholders on June 30, 2007. There were altogether
8,319,300 nominee-registered and foreign-registered shares, or 25.5% of the
share capital and 6.5% of the votes outstanding.
Altogether 1,063,042 new Elcoteq A shares were subscribed between March 15 and
April 30, 2007 under Elcoteq SE's 2001 stock option scheme. The share
subscription period ended on April 30, 2007.
IEMS Strategy
To support their business operations some terminal products customers,
especially mobile phone manufacturers, need partners able to offer and
independently manage a wider range of services i.e. to take a larger role in
product supply chains. The reasons underlying this trend are more complex
product structures and shorter product lifecycles. The main goal, apart from
managing complexity, is to increase efficiency and speed in the supply chains.
Through its Integrated Electronics Manufacturing Services (IEMS) strategy,
Elcoteq is giving special emphasis in the broadening of its service offering to
increasing its mechanics expertise and services, and to strengthening product
development services that combine both electronics and mechanics. Elcoteq has
previously announced that, in addition to developing its own operations, this
strategy could call for certain M&A arrangements or various forms of
collaboration with other companies in the same field. Negotiations in pursuit of
this strategy have proceeded according to plan with a number of candidates.
Prospects
Elcoteq forecasts that its full-year net sales will increase only slightly on
last year's and that its operating income excluding restructuring costs will be
slightly negative. The company has previously forecast that its full-year
operating income excluding restructuring costs would be on a break-even level.
Net sales in the third quarter of 2007 are expected to increase compared to the
second quarter. Third-quarter operating income excluding restructuring costs is
forecast to be positive.
Elcoteq's forecasts are based on the company's opinion of market growth and on
the project-specific forecasts of its customers, based on which Elcoteq makes
its forecasts of the realization of agreed and planned new projects.
Espoo, Finland
July 24, 2007
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Teo Ottola, CFO, tel. +358 10 413 1240
Reeta Kaukiainen, Vice President, Communications and IR, tel. +358 10 413 1742,
GSM +358 50 522 0924
Press Conference and Webcast
Elcoteq will hold a combined press conference, conference call and webcast in
English at 2.30 pm (EET) on Wednesday July 25, in the Akseli Gallen-Kallela Room
of Hotel Kämp (address: Pohjoisesplanadi 29, Helsinki, Finland).
To participate by phone, please call 5 - 10 minutes before the start of the
conference on +44 20 7162 0125 (Europe) or +1 334 323 6203 (USA), code Elcoteq.
The conference can also be followed as a live webcast or later as a recording
via Elcoteq's website www.elcoteq.com.
The presentation material used at the conference (pdf file) will be available on
the company's website www.elcoteq.com from approximately 11.00 am (EET) on July
25.
Elcoteq will publish its third-quarter interim report at 9.00 am (EET) on
October 24, 2007.
Enclosures:
1 Income statement
2 Balance sheet
3 Cash flow statement
4 Calculation of changes in shareholders' equity
5 Calculation of key figures
6 Key figures
7 Writedowns of non-current assets
8 Business areas
9 Assets pledged and contingent liabilities
10 Quarterly figures
--------------------------------------------------------------------------------
| APPENDIX 1 | |
--------------------------------------------------------------------------------
| INCOME | Q2/ | Q2/ | Cha | 1-6/ | 1-6/ | Chan-ge, | 1-12/ |
| STATEMENT, | 2007 | 2006 | n-g | 2007 | 2006 | % | 2006 |
| MEUR | | | e, | | | | |
| | | | % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 968.3 | 1,02 | -5. | 1,920.8 | 2,010. | -4.5 | 4,284. |
| | | 9.6 | 9 | | 7 | | 3 |
--------------------------------------------------------------------------------
| Change in | | | | | | | |
| work in | | | | | | | |
| progress | | | | | | | |
--------------------------------------------------------------------------------
| and finished | -0.9 | -6.5 | -86 | 0.4 | 6.0 | -93.3 | 17.3 |
| goods | | | .8 | | | | |
--------------------------------------------------------------------------------
| Other | 1.0 | 1.1 | -4. | 2.0 | 2.8 | -26.7 | 7.0 |
| operating | | | 3 | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | -964.5 | -991 | -2. | -1,921.5 | -1,960 | -2.0 | -4,182 |
| expenses | | .9 | 8 | | .1 | | .0 |
--------------------------------------------------------------------------------
| Restructuring | -3.1 | - | | -33.1 | - | | - |
| costs | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation | -19.9 | -20. | -0. | -40.0 | -38.9 | 2.7 | -82.7 |
| and | | 1 | 8 | | | | |
| writedowns | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING | -19.0 | 12.2 | | -71.3 | 20.5 | | 43.9 |
| INCOME | | | | | | | |
--------------------------------------------------------------------------------
| % of net | -2.0 | 1.2 | | -3.7 | 1.0 | | 1.0 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial | -6.1 | -5.0 | 21. | -12.5 | -10.1 | 23.7 | -23.7 |
| income and | | | 6 | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | -0.1 | -0.2 | -66 | -0.3 | -0.5 | -32.8 | -1.0 |
| profits and | | | .2 | | | | |
| losses of | | | | | | | |
| associates | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME BEFORE | -25.1 | 7.0 | | -84.1 | 9.9 | | 19.2 |
| TAXES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 5.3 | -2.0 | | 17.7 | -2.8 | | -4.7 |
--------------------------------------------------------------------------------
| NET INCOME | -19.8 | 5.0 | | -66.4 | 7.1 | | 14.6 |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUTABLE | | | | | | | |
| TO: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | -20.6 | 4.4 | | -67.5 | 6.5 | | 12.1 |
| holders of | | | | | | | |
| the parent | | | | | | | |
| company *) | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0.7 | 0.6 | 13. | 1.0 | 0.6 | 72.5 | 2.5 |
| interests | | | 2 | | | | |
--------------------------------------------------------------------------------
| | -19.8 | 5.0 | | -66.4 | 7.1 | | 14.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax is the amount corresponding to the result for the period based on |
| the estimated tax rate for the full year. The positive tax figures in the |
| first and second quarters of 2007 are due mainly to tax assets recognized on |
| losses recorded by Group companies. |
--------------------------------------------------------------------------------
| *) The Group´s reported net profit for the period. |
--------------------------------------------------------------------------------
| APPENDIX 2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET, | June 30, | Dec. 31, | Change, % | |
| MEUR | 2007 | 2006 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 36.9 | 45.4 | -18.6 | |
--------------------------------------------------------------------------------
| Tangible assets | 220.4 | 245.0 | -10.0 | |
--------------------------------------------------------------------------------
| Investments | 2.5 | 13.7 | -81.5 | |
--------------------------------------------------------------------------------
| Long-term | 34.8 | 15.3 | 127.4 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Non-current | 294.7 | 319.4 | -7.7 | |
| assets, total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 365.0 | 359.0 | 1.7 | |
--------------------------------------------------------------------------------
| Current | 420.3 | 402.9 | 4.3 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Cash and | 44.4 | 82.3 | -46.0 | |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Assets classified | 7.6 | - | | |
| as held for sale | | | | |
| *) | | | | |
--------------------------------------------------------------------------------
| Current assets, | 837.3 | 844.2 | -0.8 | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 1,132.0 | 1,163.6 | -2.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Assets classified as held for sale are measured at fair | |
| value. Asset writedowns are recognized under restructuring | |
| costs. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the parent company | |
--------------------------------------------------------------------------------
| Share capital | 13.0 | 12.6 | 3.4 | |
--------------------------------------------------------------------------------
| Other | 213.5 | 281.0 | -24.0 | |
| shareholders' | | | | |
| equity | | | | |
--------------------------------------------------------------------------------
| Equity | 226.6 | 293.7 | -22.8 | |
| attributable to | | | | |
| equity holders of | | | | |
| the parent | | | | |
| company, total | | | | |
--------------------------------------------------------------------------------
| Minority | 9.8 | 9.6 | 1.6 | |
| interests | | | | |
--------------------------------------------------------------------------------
| Total equity | 236.4 | 303.3 | -22.1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Long-term loans | 179.4 | 179.7 | -0.1 | |
--------------------------------------------------------------------------------
| Other long-term | 5.1 | 5.2 | -1.6 | |
| debt | | | | |
--------------------------------------------------------------------------------
| Long-term | 184.5 | 184.8 | -0.2 | |
| liabilities, | | | | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Current loans | 56.6 | 30.6 | 85.2 | |
--------------------------------------------------------------------------------
| Other current | 647.0 | 643.1 | 0.6 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | 7.5 | 1.8 | 313.5 | |
--------------------------------------------------------------------------------
| Current | 711.1 | 675.5 | 5.3 | |
| liabilities, | | | | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 1,132.0 | 1,163.6 | -2.7 | |
| EQUITY AND | | | | |
| LIABILITIES, | | | | |
| TOTAL | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 3 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATE | 1-6/ | 1-6/ | Change, % | 1-12/ | |
| D CASH FLOW | 2007 | 2006 | | 2 | |
| STATEMENT, | | | | 006 | |
| MEUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow | -6.6 | 53.6 | | 114.2 | |
| before | | | | | |
| change in | | | | | |
| working | | | | | |
| capital | | | | | |
--------------------------------------------------------------------------------
| Change in | -24.3 | -60.5 | -59.8 | -16.1 | |
| working | | | | | |
| capital *) | | | | | |
--------------------------------------------------------------------------------
| Financial | -9.8 | -13.9 | -29.5 | -33.2 | |
| items and | | | | | |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Cash flow | -40.7 | -20.7 | | 65.0 | |
| from | | | | | |
| operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases | -22.9 | -41.9 | -45.3 | -108.9 | |
| of | | | | | |
| non-current | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Disposals | 1.7 | 5.3 | -67.9 | 23.2 | |
| of | | | | | |
| non-current | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow | -61.9 | -57.3 | 8.0 | -20.8 | |
| before | | | | | |
| financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds | 6.7 | 1.9 | 252.6 | 2.9 | |
| from share | | | | | |
| issue | | | | | |
--------------------------------------------------------------------------------
| Change in | 25.6 | -12.0 | | -7.5 | |
| current | | | | | |
| debt **) | | | | | |
--------------------------------------------------------------------------------
| Issuance of | - | 29.8 | | 29.8 | |
| long-term | | | | | |
| debt | | | | | |
--------------------------------------------------------------------------------
| Repayment | -0.4 | -0.2 | 100.0 | -0.5 | |
| of | | | | | |
| long-term | | | | | |
| debt | | | | | |
--------------------------------------------------------------------------------
| Dividends | -7.4 | -20.6 | -64.1 | -20.6 | |
| paid | | | | | |
--------------------------------------------------------------------------------
| Cash flow | 24.6 | -1.1 | | 4.2 | |
| from | | | | | |
| financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | -37.4 | -58.3 | -35.8 | -16.5 | |
| cash and | | | | | |
| equivalents | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 82.3 | 101.4 | -18.8 | 101.4 | |
| equivalents | | | | | |
| on January | | | | | |
| 1 | | | | | |
--------------------------------------------------------------------------------
| Effect of | -0.5 | -2.1 | -76.2 | -2.5 | |
| exchange | | | | | |
| rate | | | | | |
| changes on | | | | | |
| cash held | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 44.4 | 41.0 | 8.3 | 82.3 | |
| equivalents | | | | | |
| at the end | | | | | |
| of the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The impact of this change is to improve cash flow by 3.3 million | |
| euros during the reporting period 1-6/2007 and by 17.1 million euros | |
| during 1-6/2006. | |
--------------------------------------------------------------------------------
| **) The change in current debt during the reporting period 1-6/2007 | |
| includes the change in issuance of commercial papers with a nominal | |
| value of 19 million euros. | |
--------------------------------------------------------------------------------
| APPEND | |
| IX 4 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY, MEUR | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Attributable to equity holders of the parent | Min | Total |
| | | | o-r | equi-t |
| | | | ity | y |
| | | | int | |
| | | | ere | |
| | | | sts | |
--------------------------------------------------------------------------------
| | Share | Addi | O | Transla-tio | Retain-ed | Total | | |
| | capit | -tio | t | n | ear- | | | |
| | al | -nal | - | differences | nings | | | |
| | | paid | h | | | | | |
| | | -in | e | | | | | |
| | | ca-p | r | | | | | |
| | | ital | r | | | | | |
| | | | e | | | | | |
| | | | - | | | | | |
| | | | s | | | | | |
| | | | e | | | | | |
| | | | r | | | | | |
| | | | - | | | | | |
| | | | v | | | | | |
| | | | e | | | | | |
| | | | s | | | | | |
--------------------------------------------------------------------------------
| Balanc | 12.6 | 218. | 8 | -1.9 | 55.8 | 293.7 | 9.6 | 303.3 |
| e at | | 7 | . | | | | | |
| Jan. | | | 4 | | | | | |
| 1, | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue | 0.4 | 6.3 | | | | 6.7 | | 6.7 |
| of | | | | | | | | |
| share | | | | | | | | |
| capita | | | | | | | | |
| l | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 0.4 | | 0.4 | | 0.4 |
| hedge | | | | | | | | |
| of | | | | | | | | |
| subsid | | | | | | | | |
| iaries | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | - | | | -1.3 | | -1.3 |
| flow | | | 1 | | | | | |
| hedge | | | . | | | | | |
| *) | | | 3 | | | | | |
--------------------------------------------------------------------------------
| Transl | | | | 0.6 | | 0.6 | 0.2 | 0.8 |
| ation | | | | | | | | |
| differ | | | | | | | | |
| ences | | | | | | | | |
--------------------------------------------------------------------------------
| Share- | | | | | 0.3 | 0.3 | | 0.3 |
| based | | | | | | | | |
| paymen | | | | | | | | |
| ts | | | | | | | | |
--------------------------------------------------------------------------------
| Divide | | | | | -6.3 | -6.3 | | -7.4 |
| nds | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | -67.5 | -67.5 | 1.0 | -66.4 |
| income | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 13.0 | 225. | 7 | -0.9 | -17.7 | 226.6 | 9.8 | 236.4 |
| e at | | 0 | . | | | | | |
| June | | | 1 | | | | | |
| 30, | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 12.4 | 216. | 8 | -2.9 | 63.1 | 297.0 | 6.9 | 303.9 |
| e at | | 0 | . | | | | | |
| Jan. | | | 4 | | | | | |
| 1, | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue | 0.1 | 1.8 | | | | 1.9 | | 1.9 |
| of | | | | | | | | |
| share | | | | | | | | |
| capita | | | | | | | | |
| l | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 1.2 | | 1.2 | | 1.2 |
| hedge | | | | | | | | |
| of | | | | | | | | |
| subsid | | | | | | | | |
| iaries | | | | | | | | |
--------------------------------------------------------------------------------
| Transl | | | | -1.4 | | -1.4 | -0. | -1.8 |
| ation | | | | | | | 4 | |
| differ | | | | | | | | |
| ences | | | | | | | | |
--------------------------------------------------------------------------------
| Share- | | | | | 0.7 | 0.7 | | 0.7 |
| based | | | | | | | | |
| paymen | | | | | | | | |
| ts | | | | | | | | |
--------------------------------------------------------------------------------
| Divide | | | | | -20.6 | -20.6 | | -20.6 |
| nds | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | 6.5 | 6.5 | 0.6 | 7.1 |
| income | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balanc | 12.6 | 217. | 8 | -3.1 | 49.8 | 285.4 | 7.0 | 292.5 |
| e at | | 8 | . | | | | | |
| June | | | 4 | | | | | |
| 30, | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The Group has applied hedge accounting to derivative instruments related |
| to purchases from June 30, 2007. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FORMULAS FOR THE CALCULATION OF FINANCIAL RATIOS | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity | Net income x 100 / | |
| (ROE) = | | |
--------------------------------------------------------------------------------
| | Total equity, average of opening and | |
| | closing balances | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | (Income before taxes + interest and | |
| investments | other financial expenses) x 100 / Total | |
| (ROI/ROCE) = | assets - non-interest bearing | |
| | liabilities, average of opening and | |
| | closing balances | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | Net income attributable to equity | |
| share (EPS) = | holders of the parent / Adjusted average | |
| | number of shares outstanding during the | |
| | period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings | Net income attributable to equity | |
| per share EPS) = | holders of the parent / Adjusted average | |
| | number of shares outstanding during the | |
| | period + effect of dilution on the | |
| | number of shares | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio = | Current assets / Current liabilities | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency = | Total equity x 100 / Total assets - | |
| | advance payments received | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing = | Interest-bearing liabilities - cash and | |
| | equivalents / Total equity | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | Equity attributable to equity holders of | |
| equity per share | the parent company / Adjusted number of | |
| = | shares outstanding at the end of the | |
| | period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 6 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-6/2007 | 1-6/2006 | Change, % | 1-12/200 |
| | | | | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel on | 19 334 | 16,154 | 19.7 | 16,651 |
| average during | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross capital | 24.6 | 46.1 | -46.6 | 116.9 |
| expenditures, | | | | |
| MEUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | -24.6 | 2.4 | | 4.8 |
| equity (ROE), | | | | |
| % | | | | |
--------------------------------------------------------------------------------
| Return on | -14.2 | 4.4 | | 9.1 |
| investment | | | | |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| From 12 | | | | |
| preceding | | | | |
| months: | | | | |
--------------------------------------------------------------------------------
| Return on | -22.3 | 12.7 | | 4.8 |
| equity (ROE), | | | | |
| % | | | | |
--------------------------------------------------------------------------------
| Return on | -9.4 | 15.7 | | 9.1 |
| investment | | | | |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -2.12 | 0.21 | | 0.38 |
| share (EPS), | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted | -2.11 | 0.20 | | 0.37 |
| earnings per | | | | |
| share (EPS), | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.2 | 1.2 | | 1.2 |
--------------------------------------------------------------------------------
| Solvency, % | 20.9 | 25.0 | | 26.1 |
--------------------------------------------------------------------------------
| Gearing | 0.8 | 0.6 | | 0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 6.95 | 9.09 | -23.5 | 9.31 |
| equity per | | | | |
| share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-beari | 236.5 | 206.3 | 14.6 | 210.3 |
| ng | | | | |
| liabilities, | | | | |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Interest-beari | 192.1 | 165.4 | 16.1 | 128.0 |
| ng net debt, | | | | |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Non-interest-b | 659.1 | 672.9 | -2.1 | 650.0 |
| earing | | | | |
| liabilities, | | | | |
| MEUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| WRITEDOWNS MADE TO THE | 1-6/2007 | |
| NON-CURRENT ASSETS, | | |
| MEUR | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Writedowns made to the non-current assets | |
--------------------------------------------------------------------------------
| Intangible assets | 4.2 | |
--------------------------------------------------------------------------------
| Tangible assets | 2.6 | |
--------------------------------------------------------------------------------
| Investments | 10.9 | |
--------------------------------------------------------------------------------
| Writedowns made to the | 17.7 | |
| non-current assets, | | |
| total | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Writedowns made to the non-current assets have been | |
| entered as restructuring costs in the income statement. | |
--------------------------------------------------------------------------------
| APPENDIX 8 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS | 1-6/2007 | 1-6/200 | 1-12/2006 | |
| AREAS, MEUR | | 6 | | |
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| Terminal | 1,519.2 | 1,645.6 | 3,512.1 | |
| Products | | | | |
--------------------------------------------------------------------------------
| Communicati | 401.7 | 365.1 | 772.3 | |
| ons | | | | |
| Networks | | | | |
--------------------------------------------------------------------------------
| Total | 1,920.8 | 2,010.7 | 4,284.3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´s | | | | |
| operating | | | | |
| income | | | | |
--------------------------------------------------------------------------------
| Terminal | -48.3 | 36.6 | 68.4 | |
| Products | | | | |
--------------------------------------------------------------------------------
| Communicati | -2.5 | 7.8 | 22.4 | |
| ons | | | | |
| Networks | | | | |
--------------------------------------------------------------------------------
| Group´s | -20.5 | -23.9 | -46.8 | |
| non-allocat | | | | |
| ed | | | | |
| expenses/in | | | | |
| come | | | | |
--------------------------------------------------------------------------------
| Total | -71.3 | 20.5 | 43.9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 33.1 million euros restructuring costs | |
| recognized in the first half of 2007, 31.1 | |
| million euros have been entered against Terminal | |
| Products' operating income, 1.7 million euros | |
| against Communications Networks' operating | |
| income and 0.3 million euros under Group | |
| non-allocated expenses. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elcoteq´s share of associated company results in | |
| the first half of 2007 totaled -0.3 million | |
| euros (-0.5). Associated company results for the | |
| full year 2006 totaled -1.0 million euros. The | |
| share of associated company results is allocated | |
| to the Group's non-allocated expenses/income. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX | |
| 9 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | |
| PLEDGED | |
| AND | |
| CONTINGE | |
| NT | |
| LIABILIT | |
| IES, | |
| MEUR | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | June 30, | June | Change, % | Dec. 31, | |
| | 2007 | 30, | | 2006 | |
| | | 2006 | | | |
--------------------------------------------------------------------------------
| ON | | | | | |
| BEHALF | | | | | |
| OF | | | | | |
| OTHERS | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarante | 0.0 | 0.0 | | 0.0 | |
| es | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LEASING | | | | | |
| COMMITME | | | | | |
| NTS | | | | | |
--------------------------------------------------------------------------------
| Operatin | 36.1 | 46.3 | -22.0 | 48.2 | |
| g | | | | | |
| leases, | | | | | |
| producti | | | | | |
| on | | | | | |
| machiner | | | | | |
| y and | | | | | |
| equipmen | | | | | |
| t (excl. | | | | | |
| VAT) | | | | | |
--------------------------------------------------------------------------------
| Rental | 29.7 | 29.5 | 0.7 | 27.6 | |
| commitme | | | | | |
| nts, | | | | | |
| real-est | | | | | |
| ate | | | | | |
| (excl. | | | | | |
| VAT) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATI | | | | | |
| VE | | | | | |
| CONTRACT | | | | | |
| S | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency | | | | | |
| forward | | | | | |
| contract | | | | | |
| s, | | | | | |
| transact | | | | | |
| ion risk | | | | | |
--------------------------------------------------------------------------------
| no hedge | | | | | |
| accounti | | | | | |
| ng | | | | | |
| applied | | | | | |
--------------------------------------------------------------------------------
| Nominal | 228.1 | 340.4 | -33.0 | 275.4 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Fair | -4.2 | -5.8 | -27.6 | -5.1 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Currency | | | | | |
| derivati | | | | | |
| ve | | | | | |
| contract | | | | | |
| s, | | | | | |
| transact | | | | | |
| ion risk | | | | | |
--------------------------------------------------------------------------------
| hedge | | | | | |
| accounti | | | | | |
| ng | | | | | |
| applied | | | | | |
| *) | | | | | |
--------------------------------------------------------------------------------
| Nominal | 233.1 | - | | - | |
| value | | | | | |
--------------------------------------------------------------------------------
| Fair | -1.3 | - | | - | |
| value | | | | | |
--------------------------------------------------------------------------------
| Currency | | | | | |
| forward | | | | | |
| contract | | | | | |
| s, | | | | | |
| translat | | | | | |
| ion risk | | | | | |
--------------------------------------------------------------------------------
| Nominal | 34.7 | 23.8 | 45.8 | 35.5 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Fair | 0.4 | 0.3 | 33.3 | 0.3 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Currency | | | | | |
| forward | | | | | |
| contract | | | | | |
| s, | | | | | |
| financia | | | | | |
| l risk | | | | | |
--------------------------------------------------------------------------------
| Nominal | 155.1 | 156.9 | -1.1 | 131.1 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Fair | 0.2 | 0.1 | 100.0 | -0.0 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Interest | | | | | |
| rate and | | | | | |
| foreign | | | | | |
| exchange | | | | | |
| swap | | | | | |
| contract | | | | | |
| s | | | | | |
--------------------------------------------------------------------------------
| Nominal | 4.0 | 4.0 | 0.0 | 4.0 | |
| value | | | | | |
--------------------------------------------------------------------------------
| Fair | -0.1 | 0.1 | | 0.1 | |
| value | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The derivative contracts have been valued using the market prices and | |
| the exchange reference rates of the European Central Bank on the | |
| balance sheet date. The figures also include closed positions. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The Group has applied hedge accounting to derivative instruments | |
| related to purchases from June 30, 2007. | |
--------------------------------------------------------------------------------
| OTHER COMMITMENTS | |
| The Group is engaged in some legal cases which are not expected to have | |
| a significant impact on its profits, and therefore no provision has | |
| been made. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 10 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY FIGURES | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT, | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| MEUR | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 968.3 | 952.5 | 1,104.6 | 1,169.1 | 1,029. | 981.1 |
| | | | | | 6 | |
--------------------------------------------------------------------------------
| Change in work in | -0.9 | 1.3 | -8.1 | 19.4 | -6.5 | 12.6 |
| progress and | | | | | | |
| finished goods | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 1.0 | 1.0 | 3.2 | 1.0 | 1.1 | 1.7 |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating expenses | -964.5 | -957.0 | -1,070. | -1,151. | -991.9 | -968.2 |
| | | | 9 | 0 | | |
--------------------------------------------------------------------------------
| Restructuring | -3.1 | -30.1 | - | - | - | - |
| costs | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation and | -19.9 | -20.1 | -22.0 | -21.8 | -20.1 | -18.9 |
| writedowns | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING INCOME | -19.0 | -52.4 | 6.9 | 16.6 | 12.2 | 8.3 |
--------------------------------------------------------------------------------
| % of net sales | -2.0 | -5.5 | 0.6 | 1.4 | 1.2 | 0.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | -6.1 | -6.4 | -7.4 | -6.2 | -5.0 | -5.1 |
| and expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of profits | -0.1 | -0.3 | -0.3 | -0.2 | -0.2 | -0.3 |
| and losses of | | | | | | |
| associates | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME BEFORE | -25.1 | -59.0 | -0.8 | 10.1 | 7.0 | 2.9 |
| TAXES | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 5.3 | 12.4 | 1.6 | -3.4 | -2.0 | -0.8 |
--------------------------------------------------------------------------------
| NET INCOME FOR THE | -19.8 | -46.6 | 0.8 | 6.7 | 5.0 | 2.1 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUTABLE TO: | | | | | | |
--------------------------------------------------------------------------------
| Equity holders of | -20.6 | -46.9 | -0.3 | 5.9 | 4.4 | 2.1 |
| the parent company | | | | | | |
--------------------------------------------------------------------------------
| Minority interests | 0.7 | 0.3 | 1.1 | 0.8 | 0.6 | -0.0 |
--------------------------------------------------------------------------------
| | -19.8 | -46.6 | 0.8 | 6.7 | 5.0 | 2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET, | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| MEUR | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 36.9 | 38.8 | 45.4 | 47.8 | 49.4 | 48.2 |
--------------------------------------------------------------------------------
| Tangible assets | 220.4 | 227.3 | 245.0 | 263.6 | 242.1 | 238.2 |
--------------------------------------------------------------------------------
| Investments | 2.5 | 2.6 | 13.7 | 14.0 | 14.0 | 14.0 |
--------------------------------------------------------------------------------
| Long-term | 34.8 | 28.6 | 15.3 | 14.2 | 11.2 | 10.6 |
| receivables | | | | | | |
--------------------------------------------------------------------------------
| Non-current | 294.7 | 297.4 | 319.4 | 339.6 | 316.7 | 311.0 |
| assets, total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | | | |
--------------------------------------------------------------------------------
| Inventories | 365.0 | 346.4 | 359.0 | 407.4 | 366.1 | 339.6 |
--------------------------------------------------------------------------------
| Current | 420.3 | 390.1 | 402.9 | 518.1 | 447.9 | 425.7 |
| receivables | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 44.4 | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Assets classified | 7.6 | 6.7 | - | - | - | - |
| as held for sale | | | | | | |
--------------------------------------------------------------------------------
| Current assets, | 837.3 | 818.6 | 844.2 | 1,028.0 | 854.9 | 908.9 |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 1,132. | 1,116.0 | 1,163.6 | 1,367.6 | 1,171. | 1,219.9 |
| | 0 | | | | 7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' | | | | | | |
| EQUITY AND | | | | | | |
| LIABILITIES | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the parent | | |
| company | | |
--------------------------------------------------------------------------------
| Share capital | 13.0 | 12.6 | 12.6 | 12.6 | 12.6 | 12.5 |
--------------------------------------------------------------------------------
| Other | 213.5 | 228.5 | 281.0 | 279.9 | 272.9 | 267.1 |
| shareholders' | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
| Equity | 226.6 | 241.1 | 293.7 | 292.5 | 285.4 | 279.5 |
| attributable to | | | | | | |
| equity holders of | | | | | | |
| the parent | | | | | | |
| company, total | | | | | | |
--------------------------------------------------------------------------------
| Minority interests | 9.8 | 10.1 | 9.6 | 7.9 | 7.0 | 6.7 |
--------------------------------------------------------------------------------
| Total equity | 236.4 | 251.2 | 303.3 | 300.4 | 292.5 | 286.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Long-term loans | 179.4 | 179.6 | 179.7 | 179.9 | 179.9 | 180.0 |
--------------------------------------------------------------------------------
| Other long-term | 5.1 | 4.5 | 5.2 | 4.3 | 4.1 | 3.7 |
| debt | | | | | | |
--------------------------------------------------------------------------------
| Long-term | 184.5 | 184.1 | 184.8 | 184.3 | 184.0 | 183.7 |
| liabilities, total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | | | | | | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Current loans | 56.6 | 64.8 | 30.6 | 92.0 | 26.2 | 38.7 |
--------------------------------------------------------------------------------
| Other current | 647.0 | 607.3 | 643.1 | 788.3 | 666.3 | 708.9 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Provisions | 7.5 | 8.5 | 1.8 | 2.5 | 2.7 | 2.5 |
--------------------------------------------------------------------------------
| Current | 711.1 | 680.6 | 675.5 | 882.9 | 695.2 | 750.0 |
| liabilities, total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 1,132. | 1,116.0 | 1,163.6 | 1,367.6 | 1,171. | 1,219.9 |
| EQUITY AND | 0 | | | | 7 | |
| LIABILITIES, TOTAL | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel on | 19,714 | 19,065 | 17,431 | 16,930 | 16,581 | 15,748 |
| average during the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Gross capital | 13.4 | 11.2 | 32.3 | 38.5 | 30.1 | 16.0 |
| expenditures, MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ROI/ROCE from 12 | -9.4 | -2.9 | 9.1 | 12.1 | 15.7 | 16.0 |
| preceding months, | | | | | | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | -0.64 | -1.49 | -0.01 | 0.19 | 0.14 | 0.07 |
| (EPS), EUR | | | | | | |
--------------------------------------------------------------------------------
| Solvency, % | 20.9 | 22.5 | 26.1 | 22.0 | 25.0 | 23.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH | Q2/200 | Q1/2007 | Q4/2006 | Q3/2006 | Q2/200 | Q1/2006 |
| FLOW STATEMENT, | 7 | | | | 6 | |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -2.3 | -4.3 | 23.8 | 36.8 | 28.4 | 25.2 |
| change in working | | | | | | |
| capital | | | | | | |
--------------------------------------------------------------------------------
| Change in working | -5.9 | -18.4 | 30.7 | 13.7 | -73.1 | 12.6 |
| capital | | | | | | |
--------------------------------------------------------------------------------
| Financial items | -1.2 | -8.6 | -11.6 | -7.7 | -6.6 | -7.3 |
| and taxes | | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | -9.5 | -31.2 | 43.1 | 42.6 | -51.3 | 30.6 |
| operating | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of | -12.5 | -10.4 | -18.2 | -48.8 | -24.5 | -17.4 |
| non-current assets | | | | | | |
--------------------------------------------------------------------------------
| Disposals of | 1.0 | 0.7 | 16.4 | 1.5 | 4.2 | 1.1 |
| non-current assets | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -21.0 | -40.9 | 41.2 | -4.7 | -71.5 | 14.2 |
| financing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds from | 6.7 | 0.0 | 0.5 | 0.5 | 1.4 | 0.5 |
| share issue | | | | | | |
--------------------------------------------------------------------------------
| Change in current | -8.8 | 34.4 | -60.9 | 65.4 | -10.3 | -1.7 |
| debt | | | | | | |
--------------------------------------------------------------------------------
| Issuance of | - | - | - | - | - | 29.8 |
| long-term debt | | | | | | |
--------------------------------------------------------------------------------
| Repayment of | -0.2 | -0.2 | -0.2 | -0.1 | -0.2 | - |
| long-term debt | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -7.4 | - | - | - | -20.6 | - |
--------------------------------------------------------------------------------
| Cash flow from | -9.7 | 34.3 | -60.6 | 65.9 | -29.7 | 28.6 |
| financing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and | -30.8 | -6.6 | -19.3 | 61.1 | -101.1 | 42.8 |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 | 101.4 |
| equivalents at the | | | | | | |
| beginning of the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Effect of exchange | -0.2 | -0.3 | -0.8 | 0.4 | -1.4 | -0.7 |
| rate changes on | | | | | | |
| cash held | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and | 44.4 | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 |
| equivalents at the | | | | | | |
| end of period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS AREAS, | Q2/200 | Q1/2007 | Q4/2006 | Q3/2006 | Q2/200 | Q1/2006 |
| MEUR | 7 | | | | 6 | |
--------------------------------------------------------------------------------
| Net sales | | | | | | |
--------------------------------------------------------------------------------
| Terminal Products | 752.0 | 767.2 | 898.6 | 967.9 | 837.6 | 808.0 |
--------------------------------------------------------------------------------
| Communications | 216.4 | 185.3 | 206.0 | 201.2 | 192.0 | 173.1 |
| Networks | | | | | | |
--------------------------------------------------------------------------------
| Total | 968.3 | 952.5 | 1 104.6 | 1 169.1 | 1 | 981.1 |
| | | | | | 029.6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´s | | | | | | |
| operating income | | | | | | |
--------------------------------------------------------------------------------
| Terminal Products | -11.4 | -36.9 | 13.2 | 18.6 | 20.7 | 15.9 |
--------------------------------------------------------------------------------
| Communications | 2.2 | -4.7 | 5.7 | 8.8 | 3.2 | 4.6 |
| Networks | | | | | | |
--------------------------------------------------------------------------------
| Group´s | -9.8 | -10.8 | -12.1 | -10.8 | -11.6 | -12.3 |
| non-allocated | | | | | | |
| expenses/income | | | | | | |
--------------------------------------------------------------------------------
| Total | -19.0 | -52.4 | 6.9 | 16.6 | 12.2 | 8.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 3.1 million euro restructuring costs recognized in the second quarter |
| of 2007, 2.9 million euros have been entered agaist Terminal Products' |
| operating income, 0.3 million euros against Communications Networks' |
| operating income and -0.1 million euros under Group's non-allocated |
| expenses. |
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| Of the 30.1 million euro restructuring costs recognized in the first quarter |
| of 2007, 28.3 million euros have been entered agaist Terminal Products' |
| operating income, 1.4 million euros against Communications Networks' |
| operating income and 0.4 million euros under Group's non-allocated expenses. |
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| GEOGRAPHICAL | Q2/200 | Q1/2007 | Q4/2006 | Q3/2006 | Q2/200 | Q1/2006 |
| AREAS, MEUR | 7 | | | | 6 | |
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| Net sales | | | | | | |
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| Europe | 481.0 | 507.6 | 635.8 | 659.4 | 599.7 | 530.5 |
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| Asia-Pacific | 272.1 | 231.2 | 260.3 | 307.2 | 272.8 | 253.8 |
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| Americas | 215.2 | 213.6 | 208.5 | 202.4 | 157.1 | 196.8 |
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| Total | 968.3 | 952.5 | 1,104.6 | 1,169.1 | 1,029. | 981.1 |
| | | | | | 6 | |
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