PONSSE OYJ STOCK EXCHANGE RELEASE 12 AUGUST 2008, 9:00 A.M.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 30 JUNE 2008
- Turnover was EUR 161.4 million (H1/2007 EUR 149.9).
- Q2 turnover was EUR 85.7 million (Q2/2007 EUR 71.5 million).
- Operating profit was EUR 17.7 (17.6) million and accounted for 11.0 (11.7) per
cent of the turnover.
- Q2 operating profit was EUR 8.6 million (Q2/2007 EUR 8.1 million).
- Profit before taxes was EUR 16.8 (17.8) million.
- Earnings per share were EUR 0.44 (0.46).
- Order books were valued at EUR 64.4 (63.0) million.
PRESIDENT AND CEO JUHO NUMMELA:
Our turnover increased, and we were able to retain profitability in euro at the
same level as last year. Production proceeded within the planned schedule and at
full capacity.
Used machine sales levelled from the peak of last year to the regular level. Our
maintenance services and technology company Epec increased their sales according
to plan.
The forest machine markets showed signs of slowing down, and our order flow
decreased from last year. At the end of the quarter, our order books were at the
previous year's level.
TURNOVER
Consolidated turnover for the period totalled EUR 161.4 (149.9) million.
PROFIT PERFORMANCE
Operating profit was EUR 17.7 (17.6) million. Operating profit accounted for
11.0 (11.7) per cent of turnover in the period under review. Return on capital
employed (ROCE) stood at 29.4 (40.2) per cent.
Staff costs for the period under review totalled EUR 25.6 (21.0) million, and
other operating expenses EUR 15.7 (14.4) million. Net financial expenses were
EUR -0.9 (-0.7) million. Income and expenses resulting from currency risk
hedging were included in the financial items. Profit for the period totalled EUR
12.4 (12.9) million. Earnings per share (EPS) were EUR 0.44 (0.46).
BALANCE SHEET AND FINANCIAL POSITION
At the end of the period under review, the consolidated balance sheet total
amounted to EUR 186.5 (136.7) million. Inventories and trade receivables, in
particular, were clearly higher than last year. The amount of Inventories was
EUR 89.9 (63.2) million. Trade receivables totalled EUR 41.6 (20.4) million and
liquid assets stood at EUR 5.1 (10.8) million. The amount of Group capital and
reserves was EUR 74.9 (62.8) million. The amount of interest-bearing liabilities
increased to EUR 59.7 million from the EUR 29.8 million in the previous year.
The parent company's net receivables from other Group companies stood at EUR
58.3 (33.8) million. Consolidated net liabilities totalled EUR 54.2 (17.4)
million. The equity ratio stood at 40.2 per cent (46.5 per cent) at the end of
the period under review.
Cash flow from business operations amounted to EUR -15.5 (17.8) million. Cash
flow from investing activities amounted to EUR -3.9 (-3.3) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 115.7 (154.0) million, while period-end
order books were valued at EUR 64.4 (63.0) million. The order books included
dealers' minimum purchase commitments, based on previous practice.
CAPITAL EXPENDITURE AND R&D
The Group's R&D expenses totalled EUR 3.6 million (EUR 2.8 million) during the
period under review. The amount of activated R&D expenses during the period was
EUR 624,000 (EUR 512,000).
Capital expenditure totalled EUR 3.9 million (EUR 3.3 million).
PERSONNEL
The Group had an average staff of 1,031 (845) during the period and employed
1,100 (891) people at period-end. The number of personnel increased most clearly
in the subsidiaries established in the rapidly growing markets.
MANAGEMENT AND AUDITORS
As of 1 June 2008, Juho Nummela was appointed as Ponsse Oyj's President and CEO,
Jarmo Vidgrén was appointed as the Sales Director and Deputy CEO, and Juha
Haverinen was appointed as the Factory Director. They are members of the
company's management team, presided over by Juho Nummela as the chairperson.
As of 1 July 2008, Jaakko Laurila was appointed as the Vice President
responsible for Russian business and the President and CEO of OOO Ponsse.
SHARE PERFORMANCE
The trading volume of Ponsse Oyj shares for 1 January - 30 June 2008 totalled
993,238, accounting for 3.6 per cent of the total number of shares. Share
turnover came to EUR 14.1 million, with the period's lowest and highest share
prices amounting to EUR 11.36 and EUR 16.29 respectively.
At the end of the period, shares closed at EUR 11.39 and market capitalisation
totalled EUR 318.9 million.
The board of directors decided to implement a share-based incentive system for
key personnel of the Ponsse Group.
The target group of this scheme includes approximately 20 persons. The bonuses
to be paid for the period 2008-2010 will correspond to a maximum of
approximately 120,000 Ponsse shares (also including the share paid in cash).
At the end of the reporting period the company had 47,900 shares in its
possession.
ANNUAL GENERAL MEETING
Ponsse Oyj's Annual General Meeting took place on 29 April 2008. The parent
company statements and the consolidated financial statements were approved and
members of the Board of Directors and the President and CEO were discharged from
liability for the 2007 financial period.
A decision was made to distribute a dividend of EUR 0.50 per share to
shareholders for the financial period that ended on 31 December 2007. The record
date was 5 May 2008 and the dividend payment date was 12 May 2008.
The number of Board members was confirmed as six. Maarit Aarni-Sirviö, Nils
Hagman, Ilkka Kylävainio, Seppo Remes, Juha Vidgrén and Einari Vidgrén were
elected Board members until the end of the next Annual General Meeting. At a
Board meeting held after the Annual General Meeting, Einari Vidgrén was elected
Chairman of the Board and Juha Vidgrén was elected Vice Chairman.
The Annual General Meeting confirmed the annual remuneration payable to the
Chairman of the Board as EUR 43,000, and the remuneration payable to other
members as EUR 32,000.
Ernst & Young Oy, Authorised Public Accountants, were appointed the company
auditors with Eero Huusko, Authorised Public Accountant, as the principal
auditor.
The Annual General Meeting approved the amendment of Article 6 (the right to
represent the company) of the Articles of Association.
The Annual General Meeting authorised the Board of Directors to decide on the
acquisition of treasury shares.
-A maximum of 250,000 treasury shares may be acquired using the company's
unrestricted equity deviating from the shareholders' pre-emptive right.
- The shares shall be acquired in public trading on the OMX Nordic Exchange
Helsinki
at a price commanded by the shares in public trading at the time of the
transaction.
The authorisation is valid until the next Annual General Meeting; however, no
later than 30 June 2009.
The Annual General Meeting authorised the Board of Directors to decide on the
assignment of treasury shares as follows:
The Board of Directors can, in line with the authorisation, decide on assigning
the company's treasury shares so that the maximum number of shares assigned
under the authorisation is 300,000.
-The authorisation includes the right to assign treasury shares in the
company's possession in one or more instalments.
-The authorisation may be used in the company's potential corporate
acquisitions
or other arrangements. In addition, the shares can be relinquished to the
company's existing shareholders, sold in public trading, used for developing the
company's equity structure or as part of the implementation of an incentive
scheme in the company and/or its subsidiaries.
- The authorisation includes the right of the Board to decide upon all other
terms and conditions of the share issue. Thus, the authorisation includes a
right to organise a directed issue in deviation of the shareholders'
subscription rights under the provisions prescribed by law.
- The authorisation is valid until the next Annual General
Meeting; however, no later than 30 June 2009.
GOVERNANCE
The company adheres to the insider regulations approved by the Helsinki Stock
Exchange Board of Directors and the guidelines on listed companies' governance
and control systems (Corporate Governance). The governance principles are
available on Ponsse's website in the Investors section.
BUSINESS RISKS AND THEIR MANAGEMENT
The effect of general economic fluctuations is cushioned by the fact that the
company's business operations are spread globally over several geographical
areas.
Risks related to raw materials, components and the subcontractor and supplier
network are essential to Ponsse's operations. To control these risks and
minimise the adverse effects of changes, the company is strongly investing in
developing supplier network cooperation. The operation of the network is
developed and secured through in-depth partner cooperation and by supporting the
positioning of strategic suppliers in the business park for partner companies in
the immediate vicinity of Ponsse's Vieremä factory. Component-related risks are
also controlled by manufacturing a large number of key components in the
company's own production facilities. Raw material and component suppliers'
potential delivery problems may increase the prices of raw materials used in
PONSSE products and lengthen their delivery times. Ponsse has made risk
management more efficient by specifying the terms and conditions of its supplier
agreements and by extending their periods of validity.
Ponsse Group's financing risk management controls liquidity, interest and
currency risks, and secures the availability of debt-based financing on
competitive conditions. The use of the euro as the invoicing currency has
increased in several market areas, which reduces the company's currency risk.
EVENTS AFTER THE PERIOD UNDER REVIEW
No major events have taken place after the period under review.
OUTLOOK FOR THE FUTURE
The company estimates that the growth of machined harvesting and the
cut-to-length method will continue in the long term.
The demand for forest machines in the United States, Southern Europe and Central
Europe is estimated to remain below the normal level during the rest of the
year. In the rest of Europe, the forest machine market is assumed to remain at a
satisfactory level, as during the first half of the year.
The company estimates that the latter half of 2008 will be challenging due to a
general downswing of the market and pressures of increasing material prices and
other costs. The company will pay special attention to cost management and
working capital intensification.
The general outlook of the global economy is uncertain, and predictability has
clearly declined during Q2 2008. If the forest machine market slows down due to
the general economic situation, the increase of the company's turnover will
decrease and the business result will remain at the same level as last year.
PONSSE GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 4-6/08 | 4-6/07 | 1-6/08 | 1-6/07 |
--------------------------------------------------------------------------------
| TURNOVER | | 85,668 | 71,527 | 161,447 | 149,942 |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in | 3,096 | 3,565 | 9,543 | 5,236 |
| Inventories of finished goods | | | | |
| and work in progress | | | | |
--------------------------------------------------------------------------------
| Other operating income | | 528 | 254 | 956 | 531 |
--------------------------------------------------------------------------------
| Raw materials and | | -57,215 | -47,784 | -110,539 | -100,661 |
| services | | | | | |
--------------------------------------------------------------------------------
| Expenditure on | -14,088 | -10,892 | -25,602 | -21,015 |
| employment-related benefits | | | | |
--------------------------------------------------------------------------------
| Depreciation and | | -1,225 | -1,069 | -2,410 | -2,104 |
| amortisation | | | | | |
--------------------------------------------------------------------------------
| Other operating | | -8,172 | -7,479 | -15,713 | -14,364 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | | 8,591 | 8,122 | 17,682 | 17,564 |
--------------------------------------------------------------------------------
| Share of results of associated | 19 | 625 | 95 | 916 |
| companies | | | | |
--------------------------------------------------------------------------------
| Financial income and | | 110 | -228 | -948 | -666 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 8,719 | 8,519 | 16,828 | 17,814 |
--------------------------------------------------------------------------------
| Income taxes | | -2,149 | -2,093 | -4,452 | -4,870 |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | | 6,570 | 6,427 | 12,377 | 12,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | | 0.23 | 0.23 | 0.44 | 0.46 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (EUR 1,000)
--------------------------------------------------------------------------------
| | IFRS | IFRS |
--------------------------------------------------------------------------------
| ASSETS | 30.6.08 | 31.12.07 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Intangible assets | 4,822 | 4,262 |
--------------------------------------------------------------------------------
| Goodwill | 3,710 | 3,737 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 26,903 | 25,946 |
--------------------------------------------------------------------------------
| Financial assets | 103 | 128 |
--------------------------------------------------------------------------------
| Holdings in associated companies | 1,893 | 2,156 |
--------------------------------------------------------------------------------
| Non-current receivables | 378 | 403 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,300 | 1,686 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 40,108 | 38,318 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 89,865 | 65,635 |
--------------------------------------------------------------------------------
| Trade receivables | 41,589 | 29,276 |
--------------------------------------------------------------------------------
| Income tax receivables | 793 | 861 |
--------------------------------------------------------------------------------
| Other current receivables | 9,096 | 7,191 |
--------------------------------------------------------------------------------
| Liquid assets | 5,064 | 12,633 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 146,408 | 115,595 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 186,516 | 153,914 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CAPITAL AND RESERVES, AND LIABILITIES | | |
--------------------------------------------------------------------------------
| CAPITAL AND RESERVES | | |
--------------------------------------------------------------------------------
| Share capital | 7,000 | 7,000 |
--------------------------------------------------------------------------------
| Other reserves | -652 | 19 |
--------------------------------------------------------------------------------
| Translation differences | -1,191 | -943 |
--------------------------------------------------------------------------------
| Retained earnings | 69,712 | 70,456 |
--------------------------------------------------------------------------------
| CAPITAL AND RESERVES OWNED | | |
--------------------------------------------------------------------------------
| BY PARENT COMPANY SHAREHOLDERS | 74,868 | 76,532 |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 |
--------------------------------------------------------------------------------
| TOTAL CAPITAL AND RESERVES | 74,868 | 76,532 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 34,676 | 16,717 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 689 | 768 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 30 | 30 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES | 35,394 | 17,515 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 25,003 | 17,225 |
--------------------------------------------------------------------------------
| Provisions | 5,293 | 4,341 |
--------------------------------------------------------------------------------
| Tax liabilities for the period | 1,385 | 1,752 |
--------------------------------------------------------------------------------
| Trade creditors and other current liabilities | 44,573 | 36,548 |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 76,253 | 59,867 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL CAPITAL AND RESERVES, AND LIABILITIES | 186,516 | 153,914 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 1-6/08 | 1-6/07 |
--------------------------------------------------------------------------------
| BUSINESS OPERATIONS: | | | |
--------------------------------------------------------------------------------
| Profit for the period | | 12,377 | 12,945 |
--------------------------------------------------------------------------------
| Adjustments: | | | |
--------------------------------------------------------------------------------
| Financial income and expenses | | 948 | 666 |
--------------------------------------------------------------------------------
| Share of the result of associated companies | -95 | -916 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | | 2,410 | 2,104 |
--------------------------------------------------------------------------------
| Income taxes | | 5,136 | 5,134 |
--------------------------------------------------------------------------------
| Other adjustments | | -1,141 | -183 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 19,636 | 19,750 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in working capital: | | | |
--------------------------------------------------------------------------------
| Change in current | |
--------------------------------------------------------------------------------
| non-interest-bearing receivables | | -14,249 | -2,750 |
--------------------------------------------------------------------------------
| Change in inventories | | -24,230 | -4,599 |
--------------------------------------------------------------------------------
| Change in current | |
--------------------------------------------------------------------------------
| non-interest-bearing creditors | | 7,808 | 9,430 |
--------------------------------------------------------------------------------
| Change in provisions for | | 952 | 622 |
| liabilities and charges | | | |
--------------------------------------------------------------------------------
| Interest received | | 85 | 73 |
--------------------------------------------------------------------------------
| Interest paid | | -851 | -657 |
--------------------------------------------------------------------------------
| Other financial items | | -37 | -32 |
--------------------------------------------------------------------------------
| Income taxes paid | | -4,575 | -4,027 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM BUSINESS | | -15,461 | 17,810 |
| OPERATIONS (A) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTMENTS | | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible assets | -3,926 | -3,312 |
--------------------------------------------------------------------------------
| Investments in other assets | 27 | 0 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | | 0 | 0 |
--------------------------------------------------------------------------------
| Dividends received | | 0 | 2 |
--------------------------------------------------------------------------------
| CASH OUTFLOW FROM INVESTING | | -3,899 | -3,310 |
| ACTIVITIES (B) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCING | | | |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | |
--------------------------------------------------------------------------------
| current loans | | 8,050 | -515 |
--------------------------------------------------------------------------------
| Change in current | | | |
--------------------------------------------------------------------------------
| interest-bearing liabilities | | 30 | 9 |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | |
--------------------------------------------------------------------------------
| non-current loans | | 17,958 | -203 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | -273 | -355 |
--------------------------------------------------------------------------------
| Change in non-current receivables | 25 | 4 |
--------------------------------------------------------------------------------
| Dividends paid | | -14,000 | -11,200 |
--------------------------------------------------------------------------------
| NET CASH OUTFLOW FROM FINANCING (C) | | 11,791 | -12,260 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid assets (A+B+C) | | -7,569 | 2,240 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets on 1 January | | 12,633 | 8,562 |
--------------------------------------------------------------------------------
| Liquid assets on 30 June | | 5,064 | 10,802 |
--------------------------------------------------------------------------------
RECONCILIATION OF CAPITAL AND RESERVES (EUR 1,000)
--------------------------------------------------------------------------------
| A = Share Capital | | | | | | |
--------------------------------------------------------------------------------
| B = Share premium and other | | | | | |
| reserves | | | | | |
--------------------------------------------------------------------------------
| C = Translation | | | | | | |
| differences | | | | | | |
--------------------------------------------------------------------------------
| D = Own shares | | | | | |
--------------------------------------------------------------------------------
| E = Retained earnings |
--------------------------------------------------------------------------------
| F = Total capital | | | | | | |
| and reserves | | | | | | |
--------------------------------------------------------------------------------
| | CAPITAL AND RESERVES OWNED BY PARENT | | |
| | COMPANY SHAREHOLDERS | | |
--------------------------------------------------------------------------------
| | A | B | C | D | E | F |
--------------------------------------------------------------------------------
| CAPITAL AND | 7,000 | 20 | -943 | 0 | 70 455 | 76,532 |
| RESERVES 1 JAN | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 0 | -8 | -248 | -665 | 880 | -41 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| NET INCOME | | | | | | |
| RECOGNISED | | | | | | |
--------------------------------------------------------------------------------
| DIRECTLY IN EQUITY | 0 | -8 | -248 | -665 | 880 | -41 |
--------------------------------------------------------------------------------
| Net profit for the | 0 | 0 | | | 12,377 | 12,377 |
| period | | | | | | |
--------------------------------------------------------------------------------
| TOTAL RECOGNISED | 0 | -8 | -248 | -665 | 13,257 | 12,336 |
| INCOME AND | | | | | | |
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | | | -14,00 | -14,000 |
| distribution | | | | | 0 | |
--------------------------------------------------------------------------------
| CAPITAL AND | 7,000 | 12 | -1,191 | -665 | 69,712 | 74,868 |
| RESERVES 30 JUNE | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CAPITAL AND | 7,000 | 20 | -750 | 0 | 54,887 | 61,157 |
| RESERVES 1 JAN | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 0 | 0 | -65 | 0 | -18 | -83 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| NET INCOME | | | | | | |
| RECOGNISED | | | | | | |
--------------------------------------------------------------------------------
| DIRECTLY IN EQUITY | 0 | 0 | -65 | 0 | -18 | -83 |
--------------------------------------------------------------------------------
| Net profit for the | 0 | 0 | | | 12,945 | 12,945 |
| period | | | | | | |
--------------------------------------------------------------------------------
| TOTAL RECOGNISED | 0 | 0 | -65 | 0 | 12,927 | 12,862 |
| INCOME AND | | | | | | |
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | | | -11,20 | -11,200 |
| distribution | | | | | 0 | |
--------------------------------------------------------------------------------
| CAPITAL AND | 7,000 | 20 | -815 | 0 | 56,614 | 62,819 |
| RESERVES 30 JUNE | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
SEGMENT INFORMATION (EUR 1,000)
--------------------------------------------------------------------------------
| GEOGRAPHIC SEGMENTS | | | | | |
--------------------------------------------------------------------------------
| 1-6/08 | Nordic | Rest of | North | Elimin | TOTAL |
| | countri | Europe | and | -ation | |
| | es | | South | | |
| | | | America | | |
--------------------------------------------------------------------------------
| External sales | 78,350 | 59,264 | 19,849 | | 157,463 |
--------------------------------------------------------------------------------
| Unallocated sales | | | | | 3,984 |
--------------------------------------------------------------------------------
| TURNOVER | 78,350 | 59,264 | 19,849 | | 161,447 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit of the | 7,425 | 12,343 | -19 | | 19,749 |
| segment | | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | | -2,067 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 7,425 | 12,343 | -18 | | 17,682 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of the result of | 95 | | | | 95 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | | -5,400 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | | | | | 12,377 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHIC SEGMENTS | | | | | |
--------------------------------------------------------------------------------
| 1-6/07 | Nordic | Rest of | North | Elimin | TOTAL |
| | countri | Europe | and | -ation | |
| | es | | South | | |
| | | | America | | |
--------------------------------------------------------------------------------
| External sales | 73,123 | 63,438 | 11,579 | | 148,140 |
--------------------------------------------------------------------------------
| Unallocated sales | | | | | 1,802 |
--------------------------------------------------------------------------------
| TURNOVER | 73,123 | 63,438 | 11,579 | | 149,942 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit of the | 5,827 | 14,052 | -1,064 | | 18,815 |
| segment | | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | | -1,251 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 5,827 | 14,052 | -1,064 | | 17,564 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of the result of | 916 | | | | 916 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Unallocated items | | | | | -5,535 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | | | | | 12,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | 30.6.08 | 30.6.07 | 31.12.07 |
--------------------------------------------------------------------------------
| 1. LEASING COMMITMENTS | | | 2,378 | 2,203 | 2,519 |
| (EUR 1,000) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. CONTINGENT LIABILITIES (EUR | | 30.6.08 | 30.6.07 | 31.12.07 |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| Guarantees given on | | | 1,357 | 190 | 1,285 |
| behalf of others | | | | | |
--------------------------------------------------------------------------------
| Repurchase commitments | | | 3,545 | 3,445 | 1,802 |
--------------------------------------------------------------------------------
| Other commitments | | | 1,510 | 5,609 | 1,059 |
--------------------------------------------------------------------------------
| TOTAL | | | 6,412 | 9,244 | 4,146 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. PROVISIONS (EUR | | | Guarantee provision | |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| 1.1.2008 | | | 4,341 | | |
--------------------------------------------------------------------------------
| Increase | | | 1,210 | | |
--------------------------------------------------------------------------------
| Used provisions | | | -258 | | |
--------------------------------------------------------------------------------
| 30.6.2008 | | | 5,293 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. DIVIDENDS PAID (EUR 1,000) | | 30.6.08 | 30.6.07 | |
--------------------------------------------------------------------------------
| Dividend per share 2007: EUR 0.50 (2006: | 14,000 | 11,200 | |
| EUR 0.40) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. PROPERTY, PLANT AND EQUIPMENT (EUR 1,000) |
--------------------------------------------------------------------------------
| | | | 1-6/08 | 1-6/07 | |
--------------------------------------------------------------------------------
| Increase | | | 3,033 | 3,242 | |
--------------------------------------------------------------------------------
| Decrease | | | -135 | -28 | |
--------------------------------------------------------------------------------
| TOTAL | | | 2,898 | 3,214 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. RELATED PARTY TRANSACTIONS | | 1-6/08 | 1-6/07 | |
--------------------------------------------------------------------------------
| Management's employment related | | | | |
| benefits (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Salaries and other short-term | 1,410 | 1,010 | |
| employment-related benefits | | | |
--------------------------------------------------------------------------------
| Board of Directors' emoluments | 135 | 114 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | | | 30.6.08 | 30.6.07 | 31.12.07 |
--------------------------------------------------------------------------------
| R&D expenditure, MEUR | | 3.6 | 2.8 | 5.7 |
--------------------------------------------------------------------------------
| Capital expenditure, MEUR | 3.9 | 3.3 | 6.6 |
--------------------------------------------------------------------------------
| as % of turnover | | | 2.4 | 2.2 | 2.1 |
--------------------------------------------------------------------------------
| Average number of | | | 1,031 | 845 | 876 |
| employees | | | | | |
--------------------------------------------------------------------------------
| Order books, MEUR | | | 64.4 | 63.0 | 110.1 |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 40.2 | 46.5 | 50.3 |
--------------------------------------------------------------------------------
| Earnings per share, | | | 0.44 | 0.46 | 0.95 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | 2.67 | 2.24 | 2.73 |
--------------------------------------------------------------------------------
FORMULAE FOR FINANCIAL INDICATORS
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Equity ratio, %:
Shareholders' equity + minority interest
----------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Profit before taxes - taxes (incl. change in deferred taxes) -/+ minority
interest
------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Capital and reserves
----------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues
--------------------------------------------------------------------------------
| ORDER INTAKE, MEUR | | | 1-6/08 | 1-6/07 | 1-12/07 |
--------------------------------------------------------------------------------
| Ponsse Group | | | 115.7 | 154.0 | 361.2 |
--------------------------------------------------------------------------------
The interim report has been prepared in accordance with the requirements of IAS
34, Interim Financial Reporting.
The accounting policies for the interim report are compatible with those for the
financial statements prepared on 31 December 2007.
The above figures have not been audited.
The above figures have been rounded and may therefore differ from those given in
the official financial statements.
Vieremä 12 August 2008
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 (0)20 768 8914 or +358 400 495 690
Mikko Paananen, CFO, tel. +358 (0)20 768 8648 or +358 400 817 036
DISTRIBUTION
OMX Nordic Exchange Helsinki
Principal media
www.ponsse.com
