Neomarkka Plc INTERIM REPORT 8.5.2008 at 14.00 1(13)
INTERIM REPORT 1.1. - 31.3.2008
NEOMARKKA´S INDUSTRIAL INVESTMENTS´ RESULT IMPROVING, INVESTMENTS IN SECURITIES
ARE MAKING LOSS
Neomarkka will arrange press conference regarding the first quarter interim
report and business operations, on 8 May 2008 at 15.15 at its premises.
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| KEY FIGURES | 1-3/2008 | 1-3/2007 |
--------------------------------------------------------------------------------
| Turnover, EUR million, of which | 26.3 | 1.8 |
--------------------------------------------------------------------------------
| - Cable business turnover | 27.3 | |
--------------------------------------------------------------------------------
| - Gains and losses from trade of financial | -0.9 | 1.8 |
| assets | | |
--------------------------------------------------------------------------------
| Operating profit, EUR million, of which | 1.8 | 1.3 |
--------------------------------------------------------------------------------
| - Cable business | 3.0 | |
--------------------------------------------------------------------------------
| - Trade of financial assets | -1.2 | 1.3 |
--------------------------------------------------------------------------------
| Profit for the financial year EUR million | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Earnings per share EUR | 0.10 | 0.10 |
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 1.9 | 1.8 |
--------------------------------------------------------------------------------
| Equity ratio, % | 53.1 | 57.2 |
--------------------------------------------------------------------------------
Neomarkka has executed the new strategy since June 2007. All financial figures
are not fully comparable to the corresponding period of the previous year,
because the business operations have changed substantially.
MAJOR EVENTS DURING THE PERIOD UNDER REVIEW
Industrial private equity investments; Cables
During the first quarter Reka Cables managed well.
The deliveries to customers from the factory in Russia (started-up 2007) have
been as planned and the deliveries from the production facilities in Finland
have been even higher than predicted. The prices of the metals (copper and
aluminium) have been volatile.
The construction of Reka Cables Ltd´s Riihimäki medium- and high voltage factory
expansion has proceeded and the first machine installations have been started.
The associated company Nestor Cables Ltd´s emphasis during the first quarter was
to alter the production facilities suitable for cable business operations,
installations of the machinery and equipment and other tasks related to
starting-up the operations. The work proceeded well and the first
data-communication cables were tested already at the end of the reviewed period.
The business operations in process were slightly unprofitable. The loss has been
taken included in the Group result according to share of ownership (30%).
Investments in securities
During the first quarter of the year, the gains and losses from the financial
assets and thus the operating result were unprofitable.
The situation in the investment markets was seen also in the development of the
value of the bonds issued by Nordea Bank Plc. The profits from the other
investments could not cover the decrease of the value of these bonds.
The bonds owned by Neomarkka and issued by Nordea Bank Plc are constructed so
that their share of the eQ Active Hedge Fund was, on subscription (in May 2007),
double the value of the security, and the difference was financed with loan
funding. Thus the return on bonds takes into account the return from the eQ
Active Hedge Fund reduced by the costs arising from the loan. Neomarkka had
these bonds as nominal value of 20 million euros during the review period. Of
that amount half was sold at the end of the period.
Regarding private equity, no changes were made during the period.
NEOMARKKA SHARES; PRICES AND VOLUMES TRADED
Neomarkka Plc's B shares are listed on the OMX Nordic Exchange Helsinki. The
closing price at the end of the review period was EUR 8.64 (EUR 8.15) per share.
On 31 December 2007 the price was EUR 9.79 per share. The share turnover in the
review period was 93,204 (147,160) shares. The lowest B share quotation was EUR
7.90 (EUR 7.78) and the highest quotation was EUR 10.10 (EUR 8.70).
FINANCIAL RESULT, BANLANCE SHEET AND FINANCING
The interim report has been drawn up in accordance with the IAS 34 requirements
for interim reports. Same principles for drawing up consolidated financial
statements have been followed as in the financial statement 2007. The interim
report is unaudited.
Financial result
The consolidated turnover totalled EUR 26.3 million in the review period,
consisting of the turnover of the cable business and the gains and losses from
the trade of financial assets. The turnover of the cable business totalled EUR
27.3 million. The gains and losses from the trade of financial assets totalled
EUR -0.9 million (EUR 1.8 million) in the review period.
Operating profit for the review period was EUR 1.8 million (EUR 1.3 million), of
which the operating profit of the cable business was EUR 3.0 million. The
operating loss of the trade of financial assets was EUR -1.2 million (operating
profit EUR 1.3 million). The net result for the review period was EUR 0.6
million (EUR 0.6 million). Earnings per share were EUR 0.10 (EUR 0.10).
Balance sheet and financing
At the end of the review period the balance sheet totalled EUR 113.5 million
(EUR 103.7 million).
At the end of the review period, the equity per share was EUR 10.01 (9.85) and
the equity ratio was 53.1% (57.2%).
The growth of cable business requires financing of the working capital.
Therefore it has been acquired to Reka Cables a short-term bank account credit
limit of EUR 1 million.
The financing of the associated company Nestor Cables Ltd is proceeding as
planned. The business operations start-up is financed with both own and foreign
capital.
The liquidity situation of the Group is good.
INVESTMENTS
The investments made in the review period relate to the cable business,
totalling EUR 0.8 million. Long-term leases have been recognised as fixed assets
under IFRS.
SHAREHOLDERS´ MEETING AND GOVERNANCE
The Annual General Meeting will be held on 11 June 2008. The Board of Directors
proposes the distributable dividend to be EUR 0.50 per share. From the financial
year 2006 a dividend of EUR 0.30 per share was paid.
June 2007 consists of the following persons: Jorma Wiitakorpi as chairman of the
Board, Matti Lainema as vice chairman and as members Hannu Anttila, Ilpo
Helander, Taisto Riski and Pekka Soini.
Hannu Anttila and Taisto Riski, members of the Board of Directors, are the
members of the Audit Committee.
The Managing Director of Neomarkka Plc is Markku E. Rentto.
PERSONNEL
The Group employed an average of 296 people (5). Group personnel numbered 302 on
31 March 2008, of which 299 were in the cable business.
GROUP STRUCTURE AND SHAREHOLDERS
Neomarkka Plc is the parent company in a Group that includes the fully owned
subsidiaries Novalis Plc and Alnus Ltd with their subsidiaries. The domicile of
the parent company is Hyvinkää.
At the end of the review period, Neomarkka Plc had 12,850 (13,538) shareholders.
The biggest shareholder Reka Ltd had a 50.76% (32.49%) interest at the end of
the review period, with 65.77% (53.09%) of all votes. Neomarkka Plc is thus part
of the Reka Group. Reka Ltd's domicile is Hyvinkää.
At the end of the review period, the aggregate ownership of the ten largest
shareholders was 60.62% (58.95%) of all shares and 72.60% (71.45%) of all votes.
MAJOR EVENTS AFTER THE REVIEW PERIOD
The opening of the associated company Nestor Cables Ltd was held 22 April. The
installations of the machinery and equipment have proceeded and the target is to
finalise the installations during the second quarter. The deliveries to the
customers have been started.
The construction of the Riihimäki factory expansion has been nearly completed.
The installations of machinery have continued. Major part of the investment will
be ready during the second quarter. Some installation work will be done during
July and August.
Due to the increase in the turnover of Reka Cables the factoring limit has been
increased by EUR 2 million to finance the increase in the working capital.
Regarding investments in securities, assets have been invested in interest and
short-term investments. Neomarkka has informed that it will detach from the
bonds issued by Nordea Bank Plc on 30 June 2008. At the end of the reviewing
period Neomarkka had those bonds with nominal value of EUR 10 million.
ASSESSMENT OF UNCERTAINTY FACTORS AND BUSINESS RISKS
The main financial risks of Neomarkka are currency, interest rate, commodity,
liquidity, credit and investment market-risks. These financial risks and their
hedging measures are explained further in notes to the financial statement for
year 2007.
In accordance with the updated strategy 2007, future risk factors are more
closely tied to trends in the business operations of a small number of portfolio
companies and to normal business risks. The previous strategy based Neomarkka's
risk on a widely distributed market risk. The distributed market risk means that
changes in the value of investment underlying the eQ active Hedge Fund will have
a substantial impact on Neomarkka's financial result.
The most significant risks at Reka Cables are the fluctuation in raw material
costs and more rapid changes in the volume of orders than in the past. In order
to be aware of the risks and prepare for them, Reka Cables Ltd has carried out
an extensive risk-charting process.
The company believes that the cable markets in Russia will grow and develop and
has invested heavily in exploiting the business opportunities there. These
investments include a risk that the growth in Russia will not take place
according to expectations.
Nestor Cables Ltd's business carries cable business risks and the risks involved
in starting up a new company.
Comments made in this report that do not refer to actual facts that have already
taken place are future estimates. Such estimates include expectations concerning
market trends, growth and profitability, and statements that include the terms
‘believe', ‘assume', ‘will be', or a similar expression. Since these estimates
are based on current plans and estimates, they involve risks and uncertainty
factors which may lead to results differing substantially from current
statements. Such factors include 1) operating conditions, e.g. continued success
in production and consequent efficiency benefits, availability and cost of
production inputs, demand for new products, changing circumstances in respect of
the acquisition of capital under acceptable conditions; 2) circumstances in the
sector such as the intensity of demand for products, the competition, current
and future market prices for the Group's products and related pricing pressures,
the financial situation of the Group's customers and competitors, competitors'
possible new competing products and 3) the general economic situation such as
economic growth in the Group's main geographical market areas or changes in
exchange rates and interest rates.
PROSPECTS FOR THE NEAR FUTURE
The outlook for the cable industry is positive. The overall market situation is
expected to remain good, providing that no significant negative changes take
place in the overall economic situation on the main markets of the Nordic
countries and in Russia. Though the prices of key raw materials are expected to
be quite volatile. The production facilities in Russia (start-up in 2007)
and the expansion of the Riihimäki production facilities give cause to believe
that the turnover of industrial activities will exceed EUR 120 million and
that there will be increase in profitability.
The unstable situation at the investment in securities market is expected to
continue.
The Annual General Meeting will be held on 11 June 2008 in Hyvinkää. The summons
to the Annual General Meeting will be published separately.
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| CONSOLIDATED INCOME STATEMENT (IFRS) | |
--------------------------------------------------------------------------------
| | 1.1. -31.3. | 1.1. -31.3. |
--------------------------------------------------------------------------------
| EUR 1,000 | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Industrial business turnover | 27,273 | 0 |
--------------------------------------------------------------------------------
| Gains and losses from the trade of | -939 | 1,798 |
| financial assets | | |
--------------------------------------------------------------------------------
| Turnover | 26,334 | 1,798 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in inventories of finished | 3,377 | 0 |
| products and production in progress | | |
--------------------------------------------------------------------------------
| Production for own use | 42 | 0 |
--------------------------------------------------------------------------------
| Materials and services | -21,713 | 0 |
--------------------------------------------------------------------------------
| Personnel expenses | -3,504 | -133 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -874 | -3 |
--------------------------------------------------------------------------------
| Other operating income and expenses | -1,879 | -329 |
--------------------------------------------------------------------------------
| | -24,551 | -465 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 1,783 | 1,333 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 5 | 0 |
--------------------------------------------------------------------------------
| Financial expenses | -708 | -484 |
--------------------------------------------------------------------------------
| Share of the result of associates | -86 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 994 | 849 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -409 | -221 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the financial year | 585 | 628 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share after and before | 0,10 | 0,10 |
| dilution, EUR | | |
--------------------------------------------------------------------------------
| Number of shares | 6,020,360 | 6,020,360 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET (IFRS) | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 31.3.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| A s s e t s | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Goodwill | 4,527 | 4,527 |
--------------------------------------------------------------------------------
| Other intangible non-current assets | 3,387 | 3,479 |
--------------------------------------------------------------------------------
| Tangible non-current assets | 23,814 | 23,916 |
--------------------------------------------------------------------------------
| Holdings in associates | 966 | 1,004 |
--------------------------------------------------------------------------------
| Deferred tax assets | 312 | 204 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 33,006 | 33,130 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 21,644 | 16,815 |
--------------------------------------------------------------------------------
| Financial assets recognised at fair | 24,637 | 37,034 |
| value through profit and loss | | |
--------------------------------------------------------------------------------
| Available-for-sale financial assets | 4,001 | 4,001 |
--------------------------------------------------------------------------------
| Sales receivables and other receivables | 26,801 | 12,154 |
--------------------------------------------------------------------------------
| Cash in hand and at bank | 3,386 | 3,268 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 80,469 | 73,271 |
--------------------------------------------------------------------------------
| A s s e t s | 113,475 | 106,401 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| S h a r e h o l d e r s´e q u i t y a n | | |
| d l i a b i l i t i e s | | |
--------------------------------------------------------------------------------
| Share capital | 24,082 | 24,082 |
--------------------------------------------------------------------------------
| Premium fund | 66 | 66 |
--------------------------------------------------------------------------------
| Reserve fund | 1,221 | 1,221 |
--------------------------------------------------------------------------------
| Translation differences | -112 | -145 |
--------------------------------------------------------------------------------
| Retained profit | 13,124 | 11,971 |
--------------------------------------------------------------------------------
| Other unrestricted equity | 21,327 | 21,327 |
--------------------------------------------------------------------------------
| Profit for the period | 585 | 1,153 |
--------------------------------------------------------------------------------
| Total shareholders´ equity | 60,293 | 59,675 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1,071 | 2,091 |
--------------------------------------------------------------------------------
| Provisions | 556 | 540 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 23,534 | 22,512 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHORT-TERM LIABILITIES | | |
--------------------------------------------------------------------------------
| Tax liabilities from the profit | 268 | 198 |
--------------------------------------------------------------------------------
| Short-term interest-bearing liabilities | 5,390 | 4,999 |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities | 22,363 | 16,386 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 53,182 | 46,726 |
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| S h a r e h o l d e r s´e q u i t y a | 113,475 | 106,401 |
| n d l i a b i l i t i e s | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCING ACCOUNT OF SHAREHOLDERS´ EQUITY (IFRS) | |
--------------------------------------------------------------------------------
| EUR | Share | Premi | Reserv | Trans | Other | Retained | Share-holde |
| 1,000 | capita | um | e fund | -lati | unres- | profit | rs´ equity |
| | l | fund | | on | tric-t | | total |
| | | | | diffe | ed | | |
| | | | | rence | equity | | |
| | | | | s | | | |
--------------------------------------------------------------------------------
| Share-ho | 24,082 | 66 | 1,221 | | 21,327 | 13,777 | 60,473 |
| lders´ | | | | | | | |
| equity | | | | | | | |
| 31.12.20 | | | | | | | |
| 06 | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | 0 |
--------------------------------------------------------------------------------
| Profit | | | | | | 628 | 628 |
| for the | | | | | | | |
| financia | | | | | | | |
| l year | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | | 628 | 628 |
| returns | | | | | | | |
| and | | | | | | | |
| costs | | | | | | | |
| during | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | -1,806 | -1,806 |
| s paid | | | | | | | |
--------------------------------------------------------------------------------
| Share-ho | 24,082 | 66 | 1,221 | 0 | 21,327 | 12,599 | 59,295 |
| lders´ | | | | | | | |
| equity | | | | | | | |
| 31.3.200 | | | | | | | |
| 7 | | | | | | | |
--------------------------------------------------------------------------------
| EUR | Share | Premi | Reserv | Trans | Other | Retained | Share-holde |
| 1,000 | capita | um | e fund | -lati | unres- | profit | rs´ equity |
| | l | fund | | on | tric-t | | total |
| | | | | diffe | ed | | |
| | | | | rence | equity | | |
| | | | | s | | | |
--------------------------------------------------------------------------------
| Share-ho | 24,082 | 66 | 1,221 | -145 | 21,327 | 13,124 | 59,675 |
| lders´ | | | | | | | |
| equity | | | | | | | |
| 31.12.20 | | | | | | | |
| 07 | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | 33 | | | 33 |
--------------------------------------------------------------------------------
| Profit | | | | | | 585 | 585 |
| for the | | | | | | | |
| financia | | | | | | | |
| l year | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 33 | | 585 | 618 |
| returns | | | | | | | |
| and | | | | | | | |
| costs | | | | | | | |
| during | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | 0 | 0 |
| s paid | | | | | | | |
--------------------------------------------------------------------------------
| Share-ho | 24,082 | 66 | 1,221 | -112 | 21,327 | 13,709 | 60,293 |
| lders´ | | | | | | | |
| equity | | | | | | | |
| 31.3.200 | | | | | | | |
| 8 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT (IFRS) | 1.1.-31.3. | 1.1.-31.3. |
| EUR 1,000 | 2008 | 2007 |
--------------------------------------------------------------------------------
| OPERATING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Payments received from operating activities | 24,587 | 9,821 |
--------------------------------------------------------------------------------
| Payments paid on operating activities | -23,472 | -10,655 |
--------------------------------------------------------------------------------
| Paid interests and other financial expenses | -667 | -531 |
--------------------------------------------------------------------------------
| Interests received and other financial | 445 | 0 |
| incomes | | |
--------------------------------------------------------------------------------
| Direct taxes paid | -699 | 0 |
--------------------------------------------------------------------------------
| Total operating activities | 194 | -1,365 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries and new | 0 | 0 |
| business | | |
--------------------------------------------------------------------------------
| Investments in tangible assets | -660 | 0 |
--------------------------------------------------------------------------------
| Total investing activities | -660 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Increase in loans | 963 | 0 |
--------------------------------------------------------------------------------
| Decrease in loans | -249 | 0 |
--------------------------------------------------------------------------------
| Payments of financial leasing | -128 | 0 |
--------------------------------------------------------------------------------
| Dividends paid | -2 | -1,786 |
--------------------------------------------------------------------------------
| Total financing activities | 584 | -1,786 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| CASH FLOW FOR THE PERIOD | 118 | -3,151 |
--------------------------------------------------------------------------------
| Liquid funds at beginning of the period | 3,268 | 3,324 |
--------------------------------------------------------------------------------
| LiQUID FUNDS AT END OF PERIOD | 3,386 | 173 |
--------------------------------------------------------------------------------
NOTES TO THE ACCOUNTS
The interim report has been drawn up in accordance with the IAS 34 requirements
for interim reports. The interim report is unaudited.
PRINCIPLES FOR DRAWING UP THE interim reports
Neomarkka has applied the same principles for drawing up the interim reports as
in the financial statement 2007.
SEGMENT INFORMATION
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31.3.2008 |
--------------------------------------------------------------------------------
| EUR 1,000 |
--------------------------------------------------------------------------------
| | Investment | Industrial | Others and | Total |
| | in | Investment; | elim. | |
| | securities | cables | | |
--------------------------------------------------------------------------------
| Industrial business | | 27,273 | | 27,273 |
| turnover | | | | |
--------------------------------------------------------------------------------
| Gains and losses from | -939 | | | -939 |
| the trade of financial | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Internal sales | | | | 0 |
--------------------------------------------------------------------------------
| Turnover | -939 | 27,273 | | 26,334 |
--------------------------------------------------------------------------------
| Segment operating | -1,215 | 2,996 | | 1,781 |
| profit | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | 2 | 2 |
--------------------------------------------------------------------------------
| Operating profit | -1,215 | 2,996 | | 1,783 |
--------------------------------------------------------------------------------
| Share of the result of | | -86 | | |
| associates | | | | -86 |
--------------------------------------------------------------------------------
| Unallocated items | | | | -1,112 |
--------------------------------------------------------------------------------
| Profit for the | | | | 585 |
| financial year | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment assets | 39,900 | 69,832 | 3,496 | 113,228 |
--------------------------------------------------------------------------------
| Unallocated assets | | | 247 | 247 |
--------------------------------------------------------------------------------
| Total assets | 39,900 | 69,832 | 3,743 | 113,475 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Segment liabilities | 471 | 23,616 | | 24,087 |
--------------------------------------------------------------------------------
| Unallocated | | | 29,095 | 29,095 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 471 | 23,616 | 29,095 | 53,182 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Assets - Liabilities | 39,429 | 46,216 | -25,352 | 60,293 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments | 0 | 69 | 702 | 771 |
--------------------------------------------------------------------------------
| Depreciations | -5 | -829 | -40 | -874 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31.3.2007 |
--------------------------------------------------------------------------------
| EUR 1,000 |
--------------------------------------------------------------------------------
| | Investment | Industrial | Others and | Total |
| | in | Investment; | elim. | |
| | securities | cables | | |
--------------------------------------------------------------------------------
| Industrial business | | | | 0 |
| turnover | | | | |
--------------------------------------------------------------------------------
| Gains and losses from | 1,798 | | | 1,798 |
| the trade of financial | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Internal sales | | | | 0 |
--------------------------------------------------------------------------------
| Turnover | 1,798 | | | 1,798 |
--------------------------------------------------------------------------------
| Segment operating | 1,333 | | | 1,333 |
| profit | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | 0 |
--------------------------------------------------------------------------------
| Operating profit | 1,333 | | | 1,333 |
--------------------------------------------------------------------------------
| Share of the result of | | | | 0 |
| associates | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | 0 |
--------------------------------------------------------------------------------
| Profit for the | 628 | | | 628 |
| financial year | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Segment assets | 103,722 | | | 103,722 |
--------------------------------------------------------------------------------
| Unallocated assets | | | | 0 |
--------------------------------------------------------------------------------
| Total assets | 103,722 | | | 103,722 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Segment liabilities | 44,427 | | | 44,427 |
--------------------------------------------------------------------------------
| Unallocated | | | | 0 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 44,427 | | | 44,427 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Assets - Liabilities | 59,295 | | | 59,295 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Investments | 0 | | | 0 |
--------------------------------------------------------------------------------
| Depreciations | -3 | | | -3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1-3/2008 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at beginning of period | 23,916 | 51 |
--------------------------------------------------------------------------------
| Investment | 771 | 11,061 |
--------------------------------------------------------------------------------
| Increase through company acquisition | | 17,114 |
--------------------------------------------------------------------------------
| Decrease | 0 | -2,489 |
--------------------------------------------------------------------------------
| Depreciations | -873 | -1,821 |
--------------------------------------------------------------------------------
| Impairments | 0 | 0 |
--------------------------------------------------------------------------------
| Foreign exchange differences and other | 0 | 0 |
| changes | | |
--------------------------------------------------------------------------------
| BOOK VALUE AT END OF PERIOD | 23,814 | 23,916 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 31.3.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Debts, on behalf corporate mortgages are | | |
| given | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 8,400 | 7,891 |
--------------------------------------------------------------------------------
| Granted corporate mortgages | 15,000 | 15,000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts, on securities or guarantees are | | |
| given behalf | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 13,033 | 13,033 |
--------------------------------------------------------------------------------
| Book value of pledged securities | 26,987 | 26,987 |
--------------------------------------------------------------------------------
| Granted guarantees | 13,033 | 13,033 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER COLLATERALS | | |
--------------------------------------------------------------------------------
| Guarantees | 120 | 120 |
--------------------------------------------------------------------------------
Payment commitments:
Reka Cables Ltd has made a commitment to the raw material acquisitions of its
subsidiary ZAO Reka Cables.
INVESTMENT COMMITMENTS
Investment commitments on tangible current assets on 31 March 2008 totalled EUR
6.3 million (31 March 2007 EUR 0.0 million). Investment commitments are related
to the extension of the cable production plant in Riihimäki.
DERIVATIVE CONTRACTS
--------------------------------------------------------------------------------
| EUR 1,000 | 31.3.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Nominal values | | |
--------------------------------------------------------------------------------
| Interest derivatives | | |
--------------------------------------------------------------------------------
| Interest rate ceiling derivatives | 9,800 | 9,800 |
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | |
--------------------------------------------------------------------------------
| Currency options | 9,000 | 0 |
--------------------------------------------------------------------------------
| Raw material derivatives | | |
--------------------------------------------------------------------------------
| Price hedging for metals | 1,714 | 1,119 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values | | |
--------------------------------------------------------------------------------
| Interest derivatives | | |
--------------------------------------------------------------------------------
| Interest rate ceiling derivatives | 11 | 27 |
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | |
--------------------------------------------------------------------------------
| Currency options | -36 | 0 |
--------------------------------------------------------------------------------
| Raw material derivatives | | |
--------------------------------------------------------------------------------
| Price hedging for metals | 304 | -36 |
--------------------------------------------------------------------------------
The loans of the Group have been partly hedged with interest rate derivatives. A
interest rate ceiling of 4.5% has been acquired for the EUR 3 million loan for
three years and of 4.7% for the EUR 6.8 million loan for three years. The
original interest rate base for the hedged EUR 3 million loan is the 6-month
Euribor and that for the EUR 6.8 million loan the 12-month Euribor.
--------------------------------------------------------------------------------
| RELATED PARTY EVENTS (REKA GROUP) |
--------------------------------------------------------------------------------
| EUR 1,000 | 1-3/2008 | 1-3/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales to Reka Group | 39 | 0 |
--------------------------------------------------------------------------------
| Dividends to Reka Group | 0 | -587 |
--------------------------------------------------------------------------------
| Acquisition of Reka Cables Ltd | 0 | 0 |
--------------------------------------------------------------------------------
| Other purchases from Reka Group | -207 | 0 |
--------------------------------------------------------------------------------
| Sales receivables and other receivables at end of | 321 | 0 |
| period | | |
--------------------------------------------------------------------------------
| Non-current debts (financial leases) at end of | -6,458 | 0 |
| period | | |
--------------------------------------------------------------------------------
| Other debts at end of period | -350 | 0 |
--------------------------------------------------------------------------------
| Guarantees given | 0 | 0 |
--------------------------------------------------------------------------------
| Guarantees received | 1,548 | 0 |
--------------------------------------------------------------------------------
Guarantees received include the quarantee given by Reka Ltd for a Reka Cables
Ltd´s loan from the Nordic Investment Bank. This guarantee will continue. No
costs will be incurred by Reka Cables Ltd through the guarantee.
FINANCIAL ASSETS RECOGNISED AT FAIR VALUE THROUGH PROFIT AND LOSS
--------------------------------------------------------------------------------
| EUR 1,000 | Book value | Book value |
| | 31.3.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Hedge funds or securities based on | | |
| hedge funds | | |
--------------------------------------------------------------------------------
| Ind eQ Active 4024 bonds / Nordea | 0 | 5,254 |
--------------------------------------------------------------------------------
| Ind eQ Active 4025 bonds / Nordea | 9,997 | 15,756 |
--------------------------------------------------------------------------------
| Total | 9,997 | 21,010 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Money market funds and deposits | | |
--------------------------------------------------------------------------------
| Nordea Pro Euro Korko Kasvu | 2,707 | 4,143 |
--------------------------------------------------------------------------------
| Interest rate warrants | 1,850 | 1,853 |
--------------------------------------------------------------------------------
| Certificate of deposits | 10,071 | 10,076 |
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| Total | 14,628 | 16,073 |
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| Derivatives | | |
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| Interest derivatives; interest rate | 11 | 27 |
| ceilings | | |
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| Total | 11 | 27 |
--------------------------------------------------------------------------------
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| Total financial assets recognised at | 24,636 | 37,109 |
| fair value through profit and loss | | |
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| AVAILABLE-FOR-SALE FINANCIAL ASSETS | Book value | Book value |
| EUR 1,000 | 31.3.2008 | 31.12.2007 |
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| Oulun Puhelin Holding Plc | | 3,081 | 3,081 |
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| Satakunnan Teletieto Ltd | | 920 | 920 |
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| Total available-for-sale financial | 4,001 | 4,001 |
| assets | | |
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CALCULATION OF KEY FIGURES
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| Return on | = | Profit before taxes + interest and other | x 100 |
| investment | | financial expenses / | |
--------------------------------------------------------------------------------
| (ROI) % | | [Balance sheet total - provisions and | |
| | | non-interest bearing liabilities] | |
| | | (average) | |
--------------------------------------------------------------------------------
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| Equity ratio, | = | Shareholders' equity + minority interest | x 100 |
| % | | minus deferred tax liabilities / | |
--------------------------------------------------------------------------------
| | | Balance sheet total - advances received | |
--------------------------------------------------------------------------------
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| Earnings per | = | Profit for the period belonging to parent company |
| share (EPS), | | owners / |
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| EUR | | Number of shares adjusted for share | |
| | | issues (average) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity/share, | = | Shareholders´ equity - minority interest minus |
| EUR | | deferred tax liabilities / |
--------------------------------------------------------------------------------
| | | Number of shares adjusted for share | | |
| | | issues at the end of the financial | | |
| | | period | | |
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Helsinki 8 May 2008
Neomarkka Plc
Board of Directors
pp. Sari Tulander
CFO
FURTHER INFORMATION:
Markku E. Rentto, Managing Director, tel. +358 207 209 190
Sari Tulander, CFO, tel. +358 207 209 192
DISTRIBUTION
OMX Nordic Exchange Helsinki
Main media
www.neomarkka.fi
