EFORE PLC Stock Exchange Release December 13, 2007 9.00 a.m.
EFORE PLC FINANCIAL STATEMENTS NOVEMBER 1, 2006 - OCTOBER 31, 2007 (12 months)
Fiscal period in brief (November 1, 2006 — October 31, 2007)
- Net sales totaled EUR 80.2 million (EUR 90.5 million)
- The operating profit was EUR -2.1 million (EUR -5.8 million)
- The profit before taxes was EUR -2,9 million (EUR -5.5 million)
- The net profit for the period were EUR -3.4 million (EUR -8.2 million)
- Earnings per share EUR -0.08 (EUR -0.20)
- Return on investment (ROI) -8.1 % (-14.3 %)
- Return on equity (ROE) -11.8 % (-23.9 %)
- Solvency ratio 57.9 % (62.3 %)
- Cash flow from business operations EUR -0.1 million (EUR -4.7 million)
- The consolidated net interest-bearing liabilities were EUR -6.6 million
positive (EUR -10.5 million positive), i.e. the Group's interest-bearing cash
reserves exceed interest-bearing liabilities by EUR 6.6 million
- Gearing -24.6 % (-34.6 %)
- The earnings for the fiscal year include non-recurring items totaling EUR -0.3
million.
Fourth quarter in brief (August 1, - November 31, 2007)
- Net sales totaled EUR 24.2 million (EUR 18.9 million)
- The operating profit was EUR 2.4 million (EUR -2.9 million)
- The profit before taxes was EUR 1.8 million (EUR -2.3 million)
- The net profit for the period were EUR 1.7 million (EUR -2.4 million)
- The operating profit includes EUR 1.3 million in income from the sale of a
lease option.
NET SALES AND FINANCIAL PERFORMANCE
Net sales for the fiscal year totaled EUR 80.2 million (EUR 90.5 million). Sales
by customer group were as follows: telecommunications 65.2 % (68.8 %),
industrial electronics 28.1 % (24.8 %) and health-care electronics 6.7 % (6.4
%). Geographically sales were as follows: EMEA EUR 55.6 million (EUR 57.9
million), the Americas EUR 7.4 million (EUR 21.2 million) and APAC EUR 17.2
million (EUR 11.4 million).
The operating profit for the fiscal year was EUR -2.1 million (EUR -5.8
million).
The profit for the fiscal year was affected by sales being lower in the first
two quarters as expected and by the restructuring implemented in Finland and in
the USA as planned. The company's focusing on core business led to a drop in net
sales in the USA. The USA operations have been further revised and began showing
a profit in the third quarter. As a result of the restructuring, the company's
cost structure has been improved.
A reversal of EUR 0.3 million was written down in the last fiscal year, and in
the fiscal year previous to that expenditure of EUR 1.9 million was recorded to
change the book value of inventories so that it corresponded to their net
realizable value.
The profit before taxes for fiscal year was EUR -2.9 million (EUR -5.5 million)
and the net profit was EUR -3.4 million (EUR -8.2 million).
The earnings for the fiscal year include non-recurring items totaling EUR -0.3
million. They comprise EUR -1.6 million in impairments on capitalized product
development costs and EUR 1.3 million on the sale of a call option on the lease
for the Pärnu plant.
NET SALES AND FINANCIAL PERFORMANCE AUGUST -NOVEMBER
Net sales for the fourth quarter totaled EUR 24.2 million (EUR 18.9 million).
The growth compared with the corresponding period in the previous fiscal year
was 28.2 %. Sales by customer group were as follows: telecommunications 67.2 %
(56.2 %), industrial electronics 28.7 % (31.3 %) and healthcare electronics 4.1
% (12.5 %). Geographically sales were as follows: EMEA EUR 16.5 million (EUR
13.9 million), the Americas EUR 2.7 million (EUR 2.6 million) and APAC EUR 5.0
million (EUR 2.4 million).
The operating profit for the forth quarter was EUR 2.4 million (EUR -2.9
million).
The profit before taxes for the forth quarter was EUR 1.8 million (EUR -2.3
million) and the net profit was EUR 1.7 million (EUR -2.4 million).
The operating profit includes EUR 1.3 million in income from the sale of a lease
call option on the production facilities in Pärnu, Estonia. The fall in the
value of the US dollar in relation to the euro had a clear adverse effect on the
profit.
BUSINESS OPERATIONS
Product development activity during the fiscal year was focused mainly on new
base station families that will be used in the future and other equipment for
telecommunications networks. Increasing energy efficiency has been the main
design parameter in Efore's new power supply solutions.
Efore's new plant in China was inaugurated during the second quarter and at the
same time production at Efore's old premises was discontinued. The plant is
10,600 m2 in area, 7,560 m2 of which are production premises. Production
faccilities in Finland were closed down during the second quarter. With the
expansion of production in China, the proportion of Efore's production
undertaken in countries with lower costs had already risen to 93.6 % (81.5 %) by
the end of the fiscal year.
Projects to develop operations together with long term programs in order to
improve productivity and reduce cost structure, lower inventories and make the
production and product development processes more efficient continued during the
fiscal year. The purpose of these projects is to bring continuous improvement to
the competitiveness of the company on the global market.
INVESTMENT
Group investment in fixed assets amounted to EUR 4.0 million (EUR 4.8 million),
of which investment in machinery and equipment accounted for EUR 3.1 million and
product development costs EUR 0.9 million.
Investment in product development continued, and total product development costs
for the period came to EUR 6.0 million which was 7.5% of net sales.
The company believes that product life cycles have become shorter so capitalized
product development costs are expected to continue to be lower than in previous
fiscal periods. In addition to this some product development costs have been
revised so that certain product development projects have not been capitalized
on the balance sheet. Capitalized product development costs amounted to EUR 1.7
million (EUR 4.0 million) at the end of the fiscal period.
Disposals on tangible fixed assets were EUR 0.1 million (EUR 0.5 million) during
the fiscal year.
FINANCIAL POSITION
The Group's financial position during the fiscal year was good. The Group's
solvency ratio was 57.9 % (62.3 %) and the gearing was -24.6 % (-34.6 %).
Consolidated net interest-bearing liabilities amounted to a positive figure of
EUR -6.6 million (EUR -10.5 million positive), i.e. the consolidated
interest-bearing cash reserves exceed interest-bearing liabilities by EUR 6.6
million. The consolidated net financial expenses were EUR -0.9 million (EUR 0.2
million). The cash flow from business operations was EUR -0.1 million (EUR -4.7
million) and the change in cash flow showed a decrease of EUR 3.9 million (EUR
10.1 million decrease). The cash flow after investment was EUR -3.8 million (EUR
-9.6 million). The consolidated profit includes EUR -1.3 million in exchange
differences.
Liquid assets excluding undrawn credit facilities totaled EUR 7.7 million (EUR
11.6 million) at the end of the fiscal year. The Group also had access to
substantial credit facilities at its disposal. The balance sheet total was EUR
46.7 million (EUR 48.5 million).
TAXATION
Tax assets arising from loss-making operations that must be considered as
potentially substantial have not been capitalized as assets in the consolidated
balance sheet.
GROUP STRUCTURE
Efore Group consists of the parent company Efore Plc and its directly or
indirectly wholly owned subsidiaries Efore (UK) Ltd, Efore (USA) Inc, Efore
(Suzhou) Electronics Co. Ltd, Efore (SIP) Technologies Co. Ltd, Efore Ltda,
Efore AS, Efore AB, and FI-Systems Oy. Efore Plc also has a 25% stake in Power
Innovation GmbH, a German power electronics company.
On October 31, 2007, a share deal was concluded within the company: the parent
company Efore Plc sold the shares of Efore AS and Efore (Suzhou) Electronics Co.
Ltd to Group company FI-Systems Oy. As a result of the deal, Efore Plc acquired
distributable profits. In Sweden, a branch business was continued under the name
Efore Ab.
PERSONNEL
The number of the Group's own personnel averaged 766 (792) during the fiscal
year and at the end of the fiscal year it was 706 (812). The number of personnel
fell by 106 during the fiscal year. At the same time the number of product
development and technical support resources has been increased, totalled 85
persons by the end of the fiscal year.
In addition to its own personnel, the Group's contract staff numbered 167 (173)
at the end of the fiscal year. The number of contract staff fell by 6 during the
fiscal year.
The geographical distribution of the personnel including contract staff at the
end of the fiscal year was as follows: Europe 421 (489), of which 122 (214) were
in Finland, the Americas 35 (70) and Asia 417 (426).
BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT TEAM
In accordance with the proposal of the Board's Nomination Committee, the Annual
General Meeting held on February 5, 2007 elected eight regular members of the
Board: Johan Ek, Isto Hantila, Jukka Harju, Marko Luoma, Esa Korvenmaa, Outi
Raitasuo, Timo Syrjälä and Matti Tammivuori. Isto Hantila has acted as chairman
of the Board
In its inaugural meeting on February 5, 2007, the Board of Directors elected the
members of the Audit Committee and the Compensation Committee from amongst its
members. The Board of Directors decided on the appointment of the Nomination
Committee after the end of the fiscal year, on November 8, 2007. In addition to
Board members, the Nomination Committee also includes one major shareholder from
outside the Board.
During the fiscal period some changes were made in the Executive Management Team
and in the responsibilities of its members. The members and their global spheres
of responsibility are as follows: President and CEO Reijo Mäihäniemi, Panu Kaila
(Production and Sourcing), Markku Kukkonen (Product Development), Olli Nermes
(Finances, Administration and IT), Kari Saarinen (Sales and Marketing) and Mika
Sippola (Technology).
AUDITORS
The Annual General Meeting held on February 5, 2007 appointed Authorized
Accounting Firm Ernst & Young as Efore's auditors, with Authorized Public
Accountant Juha Nenonen as principal auditor
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the fiscal year was
40.529.648 and the registered share capital was EUR 34,450,200.80.
The highest share price during the fiscal year was EUR 1.55 and the lowest price
was EUR 0.98. The average price during the fiscal year was EUR 1.25 and the
closing price was EUR 1.20. The market capitalization calculated at the final
trading price during the fiscal year was EUR 48.6 million.
The total number of Efore shares traded on the Helsinki Stock Exchange during
the fiscal year was 17.3 million and their turnover value was EUR 21.6 million.
This accounted for 42.6 % of the total number of shares at the end of the fiscal
year. The number of shareholders totaled 3429 at the end of the fiscal year.
At the end of the fiscal year the company did not hold any of its own shares.
DISCLOSURE OF CHANGES IN OWNERSHIP DURING THE FISCAL YEAR
Evli Bank Plc announced on September 27, 2007 that its holding and share of
votes in Efore Plc had exceeded 10% and now stood at 12.23%, and that it had
sold Efore Plc shares under a forward contract equivalent to 10.86% of the total
shares and votes.
BOARD OF DIRECTORS AUTHORIZATIONS
In accordance with a proposal made by the Board of Directors, the Annual General
Meeting held on February 5, 2007 authorized the Board of Directors to decide on
issuing new shares in one or more batches and with the maximum total number of
new shares issued under the authorization being 13,274,783. The Board may decide
on a targeted issue on the basis of the authorization, but the authorization
must not be used for incentives for personnel.
The authorization will remain valid for one year from the decision of the Annual
General Meeting. The authorization had not been used by October 31, 2007.
SEGMENT INFORMATION
Efore Group uses business segments for its primary segment reporting, and
geographical segments for its secondary segment reporting. Efore's primary
segment comprises the entire Group, therefore the figures reported in the
primary segment are the same as those for the whole Group.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
Rapid changes in demand are typical in Efore's field of operation, and even
short-term predictions about the future development of the business are
challenging to make. By developing operational processes Efore is improving its
internal flexibility and ability to react in order to be able to adapt its
operations to meet changing demand at short notice, if necessary.
OUTLOOK
According to the information received from companies in the business
telecommunications markets are expected to continue their moderate
euro-denominated growth also during 2008. The biggest growth is further expected
on emerging markets e.g. Asia countries, the Middle East and Africa.
The company continues to focus on the development of demanding and innovative
power-supply solutions with the world's leading companies in their own fields.
Developing energy-saving solutions that will take up less space will be a major
focal point.
Projects to develop operations together with long term programs in order to
improve productivity and reduce cost structure, lower inventories and make the
production and product development processes more efficient will continue during
the fiscal year 2008. The purpose of these projects is to bring continuous
improvement to the competitiveness of the company on the global market.
With ongoing development projects result for the fiscal year 2008 is expected to
show an improvement compared to the previous fiscal year.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF RETAINED EARNINGS
According to financial statements at October 31,2007 the parent company's
distributable shareholders' equity stood at EUR 17,769,095.15. The Board of
Directors will propose that dividend EUR 0.05 per share will be distributed.
BOARD DECISIONS CONCERNING THE ANNUAL GENERAL MEETING
The Board of Directors will propose to the Annual General Meeting to be held on
January 31, 2008 that it authorize the Board to decide on the issue, in one or
more instalments, of shares, option rights and special rights referred to in
chapter 10, section 1 of the Companies Act. The Board may, on the basis of the
authorization, decide on the issue of new shares, conveyance of existing Efore
shares held by the company, and issue of option rights and of special rights
under chapter 10, section 1 of the Companies Act in one or more instalments,
such that the number of shares issued under the authorization, including shares
to be acquired on the basis of option or special rights, does not exceed
13,000,000.
Furthermore, the Board will propose that the AGM authorize it to decide on
acquisition of the company's own shares in one or more instalments. On the basis
of the authorization, the number of Efore shares that may be acquired is a
maximum of 4,000,000 or a lower number that, when combined with Efore shares
already held by the company, does not bring the company's holding to more than
10% of the total number of Efore shares.
Furthermore, the Board will propose that the AGM authorize it to decide on
distribution of dividends under chapter 13, section 6 of the Companies Act. On
the basis of the authorization, the Board may decide on the distribution of
dividends in such a way that the aggregate amount of the dividends or funds to
be distributed on the basis of the authorization does not exceed EUR 0.05 per
share.
Furthermore, the Board will propose to the Annual General Meeting that KPMG Oy
Ag, Authorized Public Accountants be elected as the Company's auditor.
Furthermore, the Board will propose according to the Nomination Comittee
proposal the following six members to be elected to the Board: Mr. Isto Hantila,
Mr. Jukka Harju, Mr. Marko Luoma, Mr. Esa Korvenmaa, Mr. Timo Syrjälä and Mr.
Matti Tammivuori.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Aug./07- | Aug./06- | Nov.06- | Nov./05- |
--------------------------------------------------------------------------------
| | Oct./07 | Oct./06 | Oct./07 | Oct./06 |
--------------------------------------------------------------------------------
| | 3 months | 3 months | 12 months | 12 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 24,2 | 18,9 | 80,2 | 90,5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in inventories of | | | | |
--------------------------------------------------------------------------------
| finished goods and work in | -0,1 | 1,2 | -0,2 | 1,2 |
| progress | | | | |
--------------------------------------------------------------------------------
| Other operating income | 1,5 | 0,1 | 1,7 | 0,5 |
--------------------------------------------------------------------------------
| Materials and services | -15,8 | -15,3 | -54,4 | -65,9 |
--------------------------------------------------------------------------------
| Employee benefits expenses | -3,8 | -4,2 | -16,1 | -18,8 |
--------------------------------------------------------------------------------
| Depreciation | -1,1 | -0,9 | -3,7 | -3,5 |
--------------------------------------------------------------------------------
| Impairments | -0,6 | -0,4 | -2,2 | -0,5 |
--------------------------------------------------------------------------------
| Other operating expenses | -1,8 | -2,2 | -7,3 | -9,4 |
--------------------------------------------------------------------------------
| OPERATING PROFIT (-LOSS) | 2,4 | -2,9 | -2,1 | -5,8 |
--------------------------------------------------------------------------------
| % net sales | 10,1 | -15,2 | -2,6 | -6,4 |
--------------------------------------------------------------------------------
| Financing income | 0,2 | 0,3 | 1,1 | 1,0 |
--------------------------------------------------------------------------------
| Financing expenses | -0,9 | 0,0 | -2,0 | -0,8 |
--------------------------------------------------------------------------------
| Share of profit of associated | | | | |
--------------------------------------------------------------------------------
| companies | 0,0 | 0,2 | 0,1 | 0,2 |
--------------------------------------------------------------------------------
| PROFIT (-LOSS) BEFORE TAX | 1,8 | -2,3 | -2,9 | -5,5 |
--------------------------------------------------------------------------------
| % net sales | 7,4 | -12,4 | -3,6 | -6,1 |
--------------------------------------------------------------------------------
| Tax on income from operations | -0,1 | 0,0 | -0,5 | -2,7 |
--------------------------------------------------------------------------------
| PROFIT (-LOSS) FOR THE PERIOD | 1,7 | -2,4 | -3,4 | -8,2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET PROFIT/LOSS ATTRIBUTABLE | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | 1,7 | -2,4 | -3,4 | -8,2 |
| parent | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EARNINGS PER SHARE CALCULATED | | | | |
| ON PROFIT ATTRIBUTABLE TO | | | | |
| EQUITY HOLDERS OF THE PARENT: | | | | |
--------------------------------------------------------------------------------
| Earnings per share,eur | 0,04 | -0,06 | -0,08 | -0,20 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | 0,04 | -0,06 | -0,08 | -0,20 |
| eur | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY SECONDARY | Aug./07- | Aug./06- | Nov.06- | Nov./05- |
| SEGMENTS, | | | | |
--------------------------------------------------------------------------------
| EUR million | Oct./07 | Oct./06 | Oct./07 | Oct./06 |
--------------------------------------------------------------------------------
| | 3 months | 3 months | 12 months | 12 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Americas | 2,7 | 2,6 | 7,4 | 21,2 |
--------------------------------------------------------------------------------
| EMEA | 16,5 | 13,9 | 55,6 | 57,9 |
--------------------------------------------------------------------------------
| APAC | 5,0 | 2,4 | 17,2 | 11,4 |
--------------------------------------------------------------------------------
| TOTAL | 24,2 | 18,9 | 80,2 | 90,5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Oct.31, | Oct.31, | change |
--------------------------------------------------------------------------------
| | 2007 | 2006 | % |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 2,6 | 4,6 | |
--------------------------------------------------------------------------------
| Tangible assets | 8,4 | 8,6 | |
--------------------------------------------------------------------------------
| Investments in associates | 0,4 | 0,2 | |
--------------------------------------------------------------------------------
| Other long-term investments | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| Deferred tax assets | 0,1 | 0,3 | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | 11,4 | 13,8 | -17,4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 12,6 | 14,3 | |
--------------------------------------------------------------------------------
| Trade receivables and other receivables | 14,8 | 8,8 | |
--------------------------------------------------------------------------------
| Tax receivable, income tax | 0,1 | 0,0 | |
--------------------------------------------------------------------------------
| Financial assets at fair value through | 0,0 | 3,4 | |
| profit or loss | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 7,7 | 8,2 | |
--------------------------------------------------------------------------------
| CURRENT ASSETS | 35,3 | 34,7 | 1,7 |
--------------------------------------------------------------------------------
| ASSETS | 46,7 | 48,5 | -3,8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 34,5 | 34,5 | |
--------------------------------------------------------------------------------
| Share premium account | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| Other reserves | 1,4 | 1,3 | |
--------------------------------------------------------------------------------
| Translation differences | -0,1 | 0,2 | |
--------------------------------------------------------------------------------
| Retained earnigs | -8,8 | -5,7 | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 27,0 | 30,2 | -10,6 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | 27,0 | 30,2 | |
| the parent | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 0,0 | 0,1 | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 0,2 | 0,3 | |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 0,3 | 0,4 | -27,6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 0,8 | 0,9 | |
--------------------------------------------------------------------------------
| Trade payables and other liabilities | 17,3 | 16,5 | |
--------------------------------------------------------------------------------
| Provisions | 1,2 | 0,5 | |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 19,4 | 17,9 | |
--------------------------------------------------------------------------------
| LIABILITIES | 19,7 | 18,3 | |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 46,7 | 48,5 | -3,8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY FIGURES, EUR | Aug./07- | Aug./06- | Nov.06- | Nov./05- |
| million | | | | |
--------------------------------------------------------------------------------
| | Oct./07 | Oct./06 | Oct./07 | Oct./06 |
--------------------------------------------------------------------------------
| | 3 months | 3 months | 12 months | 12 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share,eur | 0,04 | -0,06 | -0,08 | -0,20 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | 0,04 | -0,06 | -0,08 | -0,20 |
| eur | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity per | 0,67 | 0,75 | 0,67 | 0,75 |
| share, eur | | | | |
--------------------------------------------------------------------------------
| Solvency ratio,% | 57,9 | 62,3 | 57,9 | 62,3 |
--------------------------------------------------------------------------------
| Return on equity-%(ROE) | 26,1 | -30,3 | -11,8 | -23,9 |
--------------------------------------------------------------------------------
| Return on investment-%(ROI) | 28,7 | -27,8 | -8,1 | -14,3 |
--------------------------------------------------------------------------------
| Gearing, % | -24,6 | -34,6 | -24,6 | -34,6 |
--------------------------------------------------------------------------------
| Net interest-bearing | -6,6 | -10,5 | -6,6 | -10,5 |
| liabilities, EUR million | | | | |
--------------------------------------------------------------------------------
| Investments (intangible and | 0,8 | 0,9 | 4,0 | 4,8 |
| tangible assets), Me | | | | |
--------------------------------------------------------------------------------
| as percentage of net sales | 3,1 | 4,5 | 4,9 | 5,3 |
--------------------------------------------------------------------------------
| Average personnel | 714 | 810 | 766 | 792 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | Nov./06- | Nov./05- | change |
--------------------------------------------------------------------------------
| EUR million | Oct./07 | Oct./06 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 76,2 | 90,8 | |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 0,0 | 0,4 | |
| income | | | |
--------------------------------------------------------------------------------
| Cash paid to suppliers and | -75,5 | -95,4 | |
| employees | | | |
--------------------------------------------------------------------------------
| Cash generated from operations | 0,7 | -4,2 | |
--------------------------------------------------------------------------------
| Interest paid | -0,4 | -0,8 | |
--------------------------------------------------------------------------------
| Dividends received | 0,0 | 0,1 | |
--------------------------------------------------------------------------------
| Interest received | 0,0 | 0,8 | |
--------------------------------------------------------------------------------
| Income taxes paid | -0,5 | -0,6 | |
--------------------------------------------------------------------------------
| Net cash from operating activities | -0,1 | -4,7 | -97,5 |
| (A) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | -3,9 | -5,0 | |
| assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | 0,2 | 0,0 | |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| Net cash used in investing | -3,7 | -4,9 | -25,7 |
| activities (B) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Proceeds from short-term borrowings | 0,0 | 0,2 | |
--------------------------------------------------------------------------------
| Repayment of long-term borrowings | -0,1 | -0,7 | |
--------------------------------------------------------------------------------
| Net cash used in financing | -0,1 | -0,5 | -73,8 |
| activities (C) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net increase/decrease in cash and | | | |
| cash | | | |
--------------------------------------------------------------------------------
| equivalents (A+B+C) | -3,9 | -10,1 | -61,4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP CONTINGENT LIABILITIES | Oct. 31, | Oct. 31, | |
--------------------------------------------------------------------------------
| EUR million | 2007 | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Security and contingent liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | | | |
--------------------------------------------------------------------------------
| Pledges | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For others | | | |
--------------------------------------------------------------------------------
| Other contingent liabilities | 0,1 | 0,2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating lease commitments | | | |
--------------------------------------------------------------------------------
| Group as lessee | | | |
--------------------------------------------------------------------------------
| Non-cancellable minimum operating | | | |
| lease | | | |
--------------------------------------------------------------------------------
| payments: | | | |
--------------------------------------------------------------------------------
| Less than 1 year | 1,9 | 1,9 | |
--------------------------------------------------------------------------------
| 1-5 years | 3,7 | 7,3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of derivate financial | | | |
| instruments | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivatives, not hedge | | | |
--------------------------------------------------------------------------------
| Forward currency contracts | | | |
--------------------------------------------------------------------------------
| Nominal amount | 0,7 | 0,8 | |
--------------------------------------------------------------------------------
| Positive fair value | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| Negative fair value | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| Option contract | | | |
--------------------------------------------------------------------------------
| Nominal amount | 7,2 | 0,0 | |
--------------------------------------------------------------------------------
| Positive fair value | 0,2 | 0,0 | |
--------------------------------------------------------------------------------
| Negative fair value | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Stock derivatives, not hedge | | | |
--------------------------------------------------------------------------------
| Futures | | | |
--------------------------------------------------------------------------------
| Nominal amount | 0,0 | 2,0 | |
--------------------------------------------------------------------------------
| Negative fair value | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| THE FOLLOWING TRANSACTIONS WERE | Oct. 31, | Oct. 31, | |
--------------------------------------------------------------------------------
| CARRIED OUT WITH RELATED PARTIES: | 2007 | 2006 | |
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| EUR million | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Associated companies | | | |
--------------------------------------------------------------------------------
| Sales | 0,0 | 4,2 | |
--------------------------------------------------------------------------------
| Purchases | 0,2 | 0,5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Receivables | 0,0 | 0,1 | |
--------------------------------------------------------------------------------
| Liabilities | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Equity attributable to equity holders of the | |
| | | parent | |
--------------------------------------------------------------------------------
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| EUR million | Share | Share | Other | Translation | Retained | Total |
| | capit | premiu | reserv | differences | earnings | |
| | al | m | es | | | |
| | | accoun | | | | |
| | | t | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 34,5 | 0,0 | 1,3 | 0,2 | -5,7 | 30,2 |
| s' equity | | | | | | |
--------------------------------------------------------------------------------
| Nov.1, 2006 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0,0 | 0,0 | -0,1 | -0,3 | 0,3 | 0,0 |
| translation | | | | | | |
--------------------------------------------------------------------------------
| difference | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 0,0 | 0,0 | -0,1 | -0,3 | 0,3 | 0,0 |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 0,0 | 0,0 | 0,0 | 0,0 | -3,4 | -3,4 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 0,0 | 0,0 | -0,1 | -0,3 | -3,1 | -3,4 |
| recognised | | | | | | |
| income and | | | | | | |
| expense for | | | | | | |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The costs | 0,0 | 0,0 | 0,2 | 0,0 | 0,0 | 0,2 |
| of options | | | | | | |
--------------------------------------------------------------------------------
| rights | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transferred | 0,0 | 0,0 | 0,1 | 0,0 | -0,1 | 0,0 |
| from | | | | | | |
| retained | | | | | | |
| earnings to | | | | | | |
| other | | | | | | |
| reserves | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 0,0 | 0,0 | -0,2 | 0,0 | 0,2 | 0,0 |
| changes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 34,5 | 0,0 | 1,4 | -0,1 | -8,8 | 27,0 |
| s' equity | | | | | | |
--------------------------------------------------------------------------------
| Oct. 31, | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR million | Share | Share | Other | Translation | Retained | Total |
| | capit | premiu | reserv | differences | earnings | |
| | al | m | es | | | |
| | | accoun | | | | |
| | | t | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 34,5 | 4,0 | 0,7 | 0,2 | -1,2 | 38,2 |
| s' equity | | | | | | |
--------------------------------------------------------------------------------
| Nov.1, 2005 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | 0,0 | 0,0 | 0,0 | 0,0 | -0,2 | -0,3 |
| translation | | | | | | |
--------------------------------------------------------------------------------
| difference | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 0,0 | 0,0 | 0,0 | 0,0 | -0,2 | -0,3 |
| recognised | | | | | | |
| directly in | | | | | | |
| equity | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 0,0 | 0,0 | 0,0 | 0,0 | -8,2 | -8,2 |
| for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 0,0 | 0,0 | 0,0 | 0,0 | -8,4 | -8,4 |
| recognised | | | | | | |
| income and | | | | | | |
| expense for | | | | | | |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The costs | 0,0 | 0,0 | 0,2 | 0,0 | 0,0 | 0,2 |
| of options | | | | | | |
--------------------------------------------------------------------------------
| rights | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transferred | 0,0 | -4,0 | 0,0 | 0,0 | 4,0 | 0,0 |
| from share | | | | | | |
| premium | | | | | | |
| account to | | | | | | |
| retained | | | | | | |
| earnings | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transferred | 0,0 | 0,0 | 0,3 | 0,0 | -0,3 | 0,0 |
| from | | | | | | |
| retained | | | | | | |
| earnings to | | | | | | |
| other | | | | | | |
| reserves | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 0,0 | 0,0 | 0,0 | 0,0 | 0,2 | 0,2 |
| changes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 34,5 | 0,0 | 1,3 | 0,2 | -5,7 | 30,2 |
| s' equity | | | | | | |
--------------------------------------------------------------------------------
| Oct. 31, | | | | | | |
| 2006 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Percentage | | | | | | |
| changes | | | | | | |
| calculated | | | | | | |
| on basis of | | | | | | |
| exact | | | | | | |
| figures. | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF KEY | | | |
| FIGURES AND RATIOS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment | = | Profit before taxes+interest and other | x 100 |
| (ROI), % | | financing expenses / | |
| | | Shareholders' equity - interest-bearing | |
| | | liabilities (average ) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on Equity | = | Profit/loss for the period / | x 100 |
| (ROE), % | | Shareholders' equity (average ) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | = | Current assets / | |
| | | Current liabilities | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency ratio, % | = | Shareholders' equity / | x 100 |
| | | Total assets - advance payments | |
| | | received - own shares | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net interest-bearing | = | Interest-bearing liabilities - | |
| liabilities | | financial assets at fair value through | |
| | | profit or loss - cash and cash | |
| | | equivalents | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing, % | = | Net interest-bearing liabilities / | x 100 |
| | | Shareholders' equity | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | = | Profit/loss for the period / | |
| | | Average number of shares - own shares | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend per share | = | Dividend for the financial year / | |
| | | Number of shares - own shares | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend payout | = | Dividend per share / | x 100 |
| ratio, % | | Earnings per share | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effective dividend | = | Dividend per share / | x 100 |
| yield, % | | Adjusted share price at balance sheet | |
| | | date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | = | Shareholders' equity - own shares / | |
| per share | | Number of shares at balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P/E-ratio | = | Adjusted share price at balance sheet | |
| | | date / | |
| | | Earnings per share | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market capitalization | = | Adjusted share price at balance sheet | |
| = | | date x actual number of shares at | |
| | | balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average personnel | = | The average number of employees at the | |
| | | end of each calendar month during the | |
| | | accounting period | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| All share-specific figures are based on the issue-adjusted number of | |
| shares. | |
--------------------------------------------------------------------------------
| Shareholders' equity is the equity owned by the holders of the | |
| parent company's shares. | |
--------------------------------------------------------------------------------
| Profit for the period is the fiscal period profit attributable to | |
| equity holders of the parent. | |
--------------------------------------------------------------------------------
The interim report has been drawn up in accordance with IAS 34 Standard on
Interim Financial Reporting. The information in this release is unaudited.
All the figures in the financial statements have been rounded up/down, for which
reason the total of the individual figures when added together may be different
from the total shown.
EFORE PLC
Board of Directors
For further information please contact Mr. Reijo Mäihäniemi, President and CEO,
on December 13, 2007 at 9 - 11 a.m. or at 3 - 4 p.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the interim report for analysts
and media on December 13, 2007 at 11 a.m. in Helsinki World Trade Center,
address Aleksanterinkatu 17.
DISTRIBUTION Helsinki Stock Exchange
Principal media
The Efore Electronics Group is an international company providing services for
the telecommunications, industrial automation and health care industries. Its
operations comprise custom-designed power supplies, power systems, manufacturing
of demanding electronics, and related service and maintenance.
Efore's head office is in Espoo, Finland. Besides Finland, the company's product
development and marketing units are located in China, the USA and Sweden. Its
production units are located in China, Estonia and the USA. In the fiscal year
ending in October 2007, consolidated net sales totaled EUR 80,2 million and the
Group's personnel averaged 766. The shares of the parent company Efore Plc are
listed at the Helsinki Stock Exchange.
www.efore.com