Rocla Oyj INTERIM REPORT 23.10.2008 AT 8.20 A.M. ROCLA OYJ INTERIM REPORT 1.1.-30.9.2008 GROWTH ON LOCAL MARKETS, SLOW-DOWN IN ORDERS FROM OTHER PARTS OF EUROPE The consolidated net sales of the Rocla Group in January-September 2008 were EUR 96.8 million, a growth of 8.1% Operating profit was EUR 3.5 million (EUR 3.4 million). Earnings per share were 0.30 euros (0.39 euros) At the end of September 2008 the order book stood at EUR 22.2 million (at the end of the year 2007 it was EUR 24.2 million, at the end of September 2007 it was EUR 25.2 million). Order bookings in the first nine months of 2008 were EUR 72.7 million (EUR 71.8 million). Because of the weakened business outlook for the remainder of the year the result for the full year is not expected to reach the level indicated earlier but will remain short of that of 2007. In connection with the publication of this interim report it has come to the company's attention that Mitsubishi Caterpillar Forklift Europe B.V., a subsidiary of Mitsubishi Heavy Industries Ltd, will make a public tender offer of the shares of Rocla Oyj. A separate stock exchange release has been issued as of today. This interim report does not include the effects of the public offering. BUSINESS STRATEGY Rocla streamlined its corporate strategy at the beginning of the year. The objective is profitable growth in products, services and solutions. In products the emphasis will continue to move in the direction of higher value-added products that are distributed through Rocla channels, distributors and partners. The service network and service offering are strengthened on Rocla´s local markets Finland, Denmark, Russia and Estonia. In solutions added focus will be on complete deliveries of automated truck systems and traditional truck deliveries and related services. Continued integration and development of business operations form the foundation for profitable growth. Customer satisfaction and cost efficiency are the drivers of continuous development of all fundamental business functions. CORPORATE STRUCTURE The Rocla Group continues to expand its operations in Denmark having acquired the capital stock of VB Trucks A/S. Expansion is supported by the corporate strategy of strengthening products, services and solutions operations on the local markets. The acquisition makes Rocla one of the biggest truck operators in Denmark. The acquired company was renamed Rocla Danmark A/S. The start-up date for operations within the Rocla Group was June 2, 2008 and since that, the financial statements of the Group include also the accounts of Rocla Danmark A/S. The functions of Rocla A/S, a Danish Rocla subsidiary since 2000, and Rocla Danmark A/S, will be combined based on separate decisions at a later date. After the acquisition Rocla has around 140 employees in Denmark. A separate stock exchange release detailing the transaction was published on June 2, 2008. OVERALL DEVELOPMENT Market statistics for Europe at the end of August report a contraction in demand for warehouse trucks by two per cent as compared with the same period last year. The rising trend of the first part of the year was turned around and demand continued to weaken during four consecutive months. Growth in demand for counter-balance trucks continued at the rate of four per cent. In North America demand for both warehouse trucks and counter-balance trucks weakened by a total of some seven per cent in comparison with the first part of the year before. In Russia vigorous market growth continued and contributed to balancing out the levelling off on other markets. Demand for Rocla´s products in the local markets of Finland, Denmark and Russia exceeded the general development and business operations for services in particular in this strategic region grew in line with objectives. Growth in order bookings in Russia was significant. In Denmark the business volume grew and the acquisition in early summer supports estimates for a continued favourable development. On the other hand the uncertainty related to market development reflected on order bookings from Western Europe as these fell clearly short of targets in the third quarter of the year. Shipments to North America continued in line with plans and delivery contracts. Rocla´s automated truck concept has gained the attraction of markets. The bidding volume for automated solutions based on the Rocla business concept is now significant. The international financial situation seems to slow down the investment decisions of customers even though the pay-back periods of investments are proven to be short. An important contract for Rocla automated truck solutions was signed in September with the Portucel Soporcel Group. The deal is part of a 500 million euro investment at the new Setúbal paper mill. The contract is the largest single order for automated trucks booked by Rocla so far. The value exceeds two million euros. KEY DATA The key financial data for the Rocla Group developed as follows: -------------------------------------------------------------------------------- | Meur | 1-9 | 1-9 | Change % | 1-12 | -------------------------------------------------------------------------------- | | 2008 | 2007 | | 2007 | -------------------------------------------------------------------------------- | Net sales | 96.8 | 89.6 | 8.1% | 124.9 | -------------------------------------------------------------------------------- | Operating profit | 3.5 | 3.4 | 2.9% | 4.9 | -------------------------------------------------------------------------------- | Orders received | 72.7 | 71.8 | 1.4% | 98.2 | -------------------------------------------------------------------------------- | Order book at the end | | | | | -------------------------------------------------------------------------------- | of the period | 22.2 | 25.2 | -11.9% | 24.2 | -------------------------------------------------------------------------------- NET SALES AND RESULTS The Rocla Group net sales in January-September 2008, EUR 96.8 million, exceed those of the same period a year ago by 8.1% (EUR 89.6 million). Net sales continued to grow in the third quarter even though order bookings slowed down compared with the first part of the year and last year. Operating profit was EUR 3.5 million (EUR 3.4 million). The successful launch of automated trucks, growth in the service business and the positive development of the operations in Denmark contributed favourably to the results of the period. On the other hand the general cost escalations caused a weakening of results in product sales. The price hikes on raw materials as well as transportation and plastic components, that followed the price of oil, reflected in rising manufacturing expenses in the third quarter. The growth of financial expenses from EUR 1.2 million to EUR 1.8 million include the effects of the growth of the rental business, rising interest rates and interests on additional loans used to finance the Danish acquisition. Profit before taxes was EUR 1.7 million (EUR 2.2 million). Net income for the first nine months was EUR 1.3 million (EUR 1.6 million). PROFITABILITY Consolidated return on investment, ROI, for the first nine months in 2008 was 7.7% p.a. (7.9 %). This indicator reflects growth in the balance sheet that followed from i.e. the acquisition and the increase of rental equipment. Return on equity, ROE, was 6.2% p.a. (8.7%). Earnings per share, EPS, in the period were 0.30 euros (0.39 euros). BALANCE SHEET AND FINANCING At the end of September 2008 the consolidated balance sheet total was EUR 111.9 million (EUR 85.9 million). At the beginning of the year the balance sheet total was EUR 85.5 million. At the end of September 2008 the interest-bearing net debt of the Rocla Group was EUR 56.9 million (EUR 37.3 million), net gearing was 208% (142%) and the equity to assets ratio was 24.9% (31.0%). PRODUCTION AND DEVELOPMENT The delivery capability of the Järvenpää factory improved in the third quarter. The order book at the end of the period is at an optimum level for lead-times of deliveries. Order bookings have slowed down as the year has progressed following the weakening of the global economic environment. This trend may cause a need for adaptation of production to a lower volume unless the direction of markets changes in a near future. The most important product development projects during the period have focused on order-picking and automation solutions for logistics customers and on further development of the service concepts. Rocla´s development work received significant recognition in the form of the AGVS Reward 2008 extended to Rocla in Hannover, Germany. The prize embodies special achievements, innovations and best practices in the development of automated truck systems (AGVS, Automated Guided Vehicle Systems). The prize was awarded by the International Logistics Center. The nomination committee consisted of top experts representing leading logistics companies, industry and universities. According to the chairman of the prize committee the recognition symbolizes capability, competitiveness and leadership within the industry. The AGVS Reward is extended every other year after 2008, its first year. The objective of the prize is to promote the profiling of progressive automation solutions on an international level. INVESTMENTS Gross investments in fixed assets in the first nine months of 2008 came to EUR 6.1 million (EUR 3.4 million), of which product development expenses of EUR 1.5 million (EUR 1.5 million) were carried forward in line with IFRS-practices. MANAGEMENT AND PERSONNEL The number of Rocla Oyj Board Members was reduced to five in the beginning of summer as Gregory F. King left the Board effective May 31, 2008 following his retirement from the employment of Mitsubishi Caterpillar Forklift America Inc, a significant Rocla Oyj shareholder. During the first nine months of 2008 the average number of employees in the Group was 588 (499). At the end of the period total personnel was 649 (507), of whom 219 (99) worked for the Group outside Finland. In Denmark the Rocla Group had 140 employees (50) following the June acquisition and in Russia the number of employees was 66 (41). AUTHORIZATIONS The Annual General Meeting on March 26, 2008 authorized the Board to decide on the acquisition of 194,535 Rocla Oyj shares and on the transfer of treasury shares held by the company to enable the Board to issue a maximum of 230,000 new shares in one or several decisions. The authorization is for a paid share issue. The Board holds authorization to decide on the terms of the share issue. The authorization, that is valid until the end of the Annual General Meeting in 2009, has not been used. OPTION RIGHTS The Annual General Meeting also decided to extend option rights to key employees of Rocla Oyj, to Board Members and to wholly owned subsidiaries of the company. On June 10, 2008 the Board made a technical change in the terms of the option-rights by specifying that new shares subscribed based on option rights would be entered to their nominal value in share capital. Any additional portion of the subscription price will be entered in unrestricted equity. SHARES During the first nine months of 2008 a total of 120,383 Rocla Oyj shares were traded at the Helsinki Exchanges. This corresponds to some 2.8% of the total number of shares. The highest share price of the period was 11.22 euros and the lowest 7.04 euros. The average price was 9.53 euros and the closing price at the end of September 2008 was 7.49 euros. The Rocla Oyj market capitalization at the end of September based on the going price and excluding treasury shares was EUR 31.7 million (EUR 47.8 million). Rocla holds 29,066 of its own shares corresponding to 0.7% of the total number of shares and votes. During the period the company transferred 1,723 shares to management based on the 2007 profit bonus system. Rocla Oyj's share capital is 4,264,788 euros and the total number of shares is 4,264,788. OWNERSHIP There were no substantial changes in the Rocla Oyj ownership during the period. On September 30, 2008 the major shareholders were: -------------------------------------------------------------------------------- | Owner | % | Number | | | | of shares | -------------------------------------------------------------------------------- | 1. Etra-Invest Oy Ab | 23.45% | 1 000 000 | -------------------------------------------------------------------------------- | 2. Mitsubishi Caterpillar Forklift America | 14.07% | 600 000 | -------------------------------------------------------------------------------- | 3. Mitsubishi Caterpillar Forklift Europe B | 14.07% | 600 000 | -------------------------------------------------------------------------------- | 4. Sijoitusrahasto Aktia Capital | 4.46% | 190 000 | -------------------------------------------------------------------------------- | 5. EVK-Capital Oy | 4.22% | 180 000 | -------------------------------------------------------------------------------- | 6. Mandatum Henkivakuutusosakeyhtiö | 4.01% | 171 200 | -------------------------------------------------------------------------------- | 7. Turun Kaupungin Vahinkorahasto | 2.34% | 99 618 | -------------------------------------------------------------------------------- | 8. Sr Arvo Finland Value | 1.34% | 57 209 | -------------------------------------------------------------------------------- | 9. Keskinäinen vakuutusyhtiö Fennia | 1.1% | 47 000 | -------------------------------------------------------------------------------- | 10. Turun kaupunki | 0.96% | 40 754 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total 10 largest | 70.01% | 2 985 781 | -------------------------------------------------------------------------------- | Nominee-registered | 12.63% | 538 750 | -------------------------------------------------------------------------------- | Others | 17.36% | 740 257 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 100.0% | 4 264 788 | -------------------------------------------------------------------------------- ORDER BOOKINGS AND ORDER BOOK On September 2008 the order book stood at EUR 22.2 million. The corresponding value a year ago was EUR 25.2 million. At the beginning of the year the order book was EUR 24.2 million. The change from the situation a year ago is -11.9% and from the turn of the year -8.3%. IMMINENT RISKS AND FACTORS OF UNCERTAINTY The most significant strategic and operational risks of the Group´s business operations relate to the management of partnerships, launching of new products and estimations of competitive position, price development of production factors and the obligations and evaluations of long-term contracts. In view of 2008 developments and Rocla´s financial position the risks related especially to the management of materials expenses are of particular importance. Managing the increasing price of steel is the most significant of the risks related to raw materials. The costs of transportation and plastic components that follow the price of oil have brought cost pressures on the products business. Adding potential cost increases on raw materials to sales prices is generally possible only with some delay and within the margins defined by market prices. Management of this risk is based on developing the supplier network of the Group. Market outlooks include a growing element of uncertainty. The overall economic situation is likely to have a negative impact on the truck business and Rocla during the remainder of the year. The Group´s financing is estimated to become increasingly expensive as a result of rising interest rates and the international financial crisis. In securing adequate financing and managing the risks related to financial expenses the company seeks to rearrange corporate financing to the extent necessary. OUTLOOK At the end of September 2008 the Rocla Group order book stood at an optimum level in relation to the lead times of deliveries. Demand for the Group's products has slowed down following the general development on Europe´s major markets. On the Group's local markets demand for products and services has, in the main, developed favourably and investments in these markets have also been successful in line with expectations. The outlook is shadowed by the uncertainty related to forecasting developments of markets and trade cycles. The rising materials costs have brought pressure on margins. The transfer of cost increases to sales prices has become more difficult as a result of intensified competition. In the Rocla Interim Report for the first half of 2008 the profit outlook for the year was described as follows: unless there is a major change in the economic outlook Rocla Group net sales are expected to grow and results to improve in the fiscal year 2008. Upon the deterioration of the economic outlook during the third quarter the estimate is now that net sales will meet the level of 2007. The slowdown in order bookings weakens the profit estimate for the last quarter of the year. The result of the third quarter fell even more than expected below the result of the corresponding quarter last year. In these circumstances net profit for the current fiscal year is expected to fall short of the net profit of last year contrary to the forecast in the previous Interim Report. FINANCIAL INFORMATION Accounting practices The Interim Report for January-September 2008 has been prepared based on the IAS 34 Interim Report Standard. Rocla Oyj has adhered to the same accounting principles and reporting standards as in the Financial Statements for 2007. The key ratios presented in the Interim Report have been computed based on the same principles as the corresponding data in the latest financial statements. The calculation principles for the key ratios are presented on page 24 of the Financial Statements section in the Annual Report of 2007. The Financial Statements are unaudited. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT (Meur) | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | 1-9/2008 | 1-9/2007 | Change % | 1-12/2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 96.8 | 89.6 | 8.1 % | 124.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in finished goods | | | | | -------------------------------------------------------------------------------- | and work in progress | 0.1 | 0.1 | | -1.6 | -------------------------------------------------------------------------------- | Other operating | | | | | -------------------------------------------------------------------------------- | income | 0.2 | 0.1 | | 0.1 | -------------------------------------------------------------------------------- | Materials and | | | | | -------------------------------------------------------------------------------- | services | -54.9 | -55.3 | -0.7 % | -74.6 | -------------------------------------------------------------------------------- | Personnel expenses | -21.2 | -17.0 | 24.5 % | -24.1 | -------------------------------------------------------------------------------- | Depreciation | -6.5 | -5.4 | 20.7 % | -7.3 | -------------------------------------------------------------------------------- | Other operating | | | | | -------------------------------------------------------------------------------- | expenses | -11.0 | -8.6 | 27.2 % | -12.7 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 3.5 | 3.4 | 2.9 % | 4.9 | -------------------------------------------------------------------------------- | Financial expenses | | | | | -------------------------------------------------------------------------------- | (net) | -1.8 | -1.2 | 49.3 % | -1.7 | -------------------------------------------------------------------------------- | INCOME BEFORE | | | | | -------------------------------------------------------------------------------- | TAXES | 1.7 | 2.2 | -23.3 % | 3.2 | -------------------------------------------------------------------------------- | Income taxes | -0.4 | -0.6 | -30.7 % | -0.8 | -------------------------------------------------------------------------------- | NET INCOME | | | | | -------------------------------------------------------------------------------- | FOR THE PERIOD | 1.3 | 1.6 | -20.6 % | 2.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | | | | | -------------------------------------------------------------------------------- | euros | 0.30 | 0.39 | | 0.57 | -------------------------------------------------------------------------------- | Earnings per share. | | | | | -------------------------------------------------------------------------------- | euros (diluted) | 0.30 | - | | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | 9/2008 | 9/2007 | 12/2007 | | (Meur) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Intangible | | | | -------------------------------------------------------------------------------- | assets | 7.9 | 7.3 | 7.6 | -------------------------------------------------------------------------------- | Consolidated goodwill | 2.5 | 2.1 | 2.1 | -------------------------------------------------------------------------------- | Tangible | | | | -------------------------------------------------------------------------------- | assets | 39.4 | 29.5 | 30.5 | -------------------------------------------------------------------------------- | Receivables | 0.4 | 0.1 | 0.1 | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | TOTAL | 50.1 | 39.0 | 40.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Inventories | 37.2 | 23.7 | 23.9 | -------------------------------------------------------------------------------- | Sales receivables and | | | | -------------------------------------------------------------------------------- | other receivables | 23.4 | 22.3 | 20.3 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 1.2 | 0.9 | 1.0 | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | TOTAL | 61.8 | 46.9 | 45.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS TOTAL | 111.9 | 85.9 | 85.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | Share capital | 4.3 | 4.3 | 4.3 | -------------------------------------------------------------------------------- | Premium fund | 6.8 | 6.8 | 6.8 | -------------------------------------------------------------------------------- | Retained earnings | 14.9 | 13.6 | 13.6 | -------------------------------------------------------------------------------- | Income for the period | 1.3 | 1.6 | 2.4 | -------------------------------------------------------------------------------- | EQUITY TOTAL | 27.4 | 26.3 | 27.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Interest-bearing debt | 32.3 | 20.5 | 20.9 | -------------------------------------------------------------------------------- | Deferred taxes | 2.1 | 1.6 | 1.9 | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | TOTAL | 34.4 | 22.2 | 22.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Interest-bearing debt | 25.8 | 17.6 | 16.9 | -------------------------------------------------------------------------------- | Provisions | 0.5 | 0.4 | 0.4 | -------------------------------------------------------------------------------- | Non interest-bearing debt | 23.8 | 19.4 | 18.3 | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | TOTAL | 50.1 | 37.4 | 35.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES TOTAL | 84.5 | 59.6 | 58.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | TOTAL | 111.9 | 85.9 | 85.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGE IN EQUITY | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A=Share capital, B=Premium fund, C=Translation differences | | -------------------------------------------------------------------------------- | D=Current value fund, E=Retained earnings, F=Income for the | -------------------------------------------------------------------------------- | period, G=Total | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1-9/2008 | A | B | C | D | E | F | G | -------------------------------------------------------------------------------- | Beginning | 4.3 | 6.8 | 0.0 | 0.0 | 16.0 | - | 27.0 | -------------------------------------------------------------------------------- | Share | | | | | | | | | subscriptions | | | | | | | | -------------------------------------------------------------------------------- | on option-rights | | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | | | | | -1.1 | | -1.1 | -------------------------------------------------------------------------------- | Net income | | | | | | 1.3 | 1.3 | -------------------------------------------------------------------------------- | Other changes | | 0.0 | 0.1 | 0.0 | 0.0 | | 0.1 | -------------------------------------------------------------------------------- | End | 4.3 | 6.8 | 0.1 | 0.0 | 14.9 | 1.3 | 27.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1-9/2007 | A | B | C | D | E | F | G | -------------------------------------------------------------------------------- | Beginning | 3.9 | 4.6 | 0.0 | 0.0 | 14.4 | - | 23.0 | -------------------------------------------------------------------------------- | Share | | | | | | | | | subscriptions | | | | | | | | -------------------------------------------------------------------------------- | on option-rights | 0.3 | 2.1 | | | | | 2.5 | -------------------------------------------------------------------------------- | Dividends paid | | | | | -0.8 | | -0.8 | -------------------------------------------------------------------------------- | Net income | | | | | | 1.6 | 1.6 | -------------------------------------------------------------------------------- | Other changes | | | -0.0 | 0.0 | | | 0.0 | -------------------------------------------------------------------------------- | End | 4.3 | 6.8 | 0.0 | 0.0 | 13.6 | 1.6 | 26.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1-12/2007 | A | B | C | D | E | F | G | -------------------------------------------------------------------------------- | Beginning | 3.9 | 4.6 | 0.0 | 0.0 | 14.4 | - | 23.0 | -------------------------------------------------------------------------------- | Share | | | | | | | | | subscriptions | | | | | | | | -------------------------------------------------------------------------------- | on option-rights | 0.3 | 2.1 | | | | | 2.5 | -------------------------------------------------------------------------------- | Dividends paid | | | | | -0.8 | | -0.8 | -------------------------------------------------------------------------------- | Net income | | | | | | 2.4 | 2.4 | -------------------------------------------------------------------------------- | Other changes | | | 0.0 | 0.0 | | | 0.0 | -------------------------------------------------------------------------------- | End | 4.3 | 6.8 | 0.0 | 0.0 | 13.6 | 2.4 | 27.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED FUNDS STATEMENT | | | | -------------------------------------------------------------------------------- | | 1-9/2008 | 1-9/2007 | 1-12/2007 | -------------------------------------------------------------------------------- | Cash flow from operations | | | | -------------------------------------------------------------------------------- | Net income | 1.3 | 1.6 | 2.4 | -------------------------------------------------------------------------------- | Adjustments: | | | | -------------------------------------------------------------------------------- | -Depreciation | 6.5 | 5.4 | 7.3 | -------------------------------------------------------------------------------- | -Financial income and expenses | 1.9 | 1.2 | 1.7 | -------------------------------------------------------------------------------- | -Taxes | 0.4 | 0.6 | 0.8 | -------------------------------------------------------------------------------- | -Other adjustments | -0.1 | 0.0 | 0.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in working capital | -8.5 | -4.9 | -4.1 | -------------------------------------------------------------------------------- | Interests paid | -2.7 | -1.2 | -2.1 | -------------------------------------------------------------------------------- | Interests received | 0.8 | 0.2 | 0.1 | -------------------------------------------------------------------------------- | Taxes paid | 0.0 | -0.1 | 0.0 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM | | | | -------------------------------------------------------------------------------- | OPERATIONS | -0.3 | 2.7 | 6.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET CASH FLOW FROM | | | | -------------------------------------------------------------------------------- | INVESTMENTS | -6.3 | -3.4 | -4.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | | | | -------------------------------------------------------------------------------- | Loans withdrawn | 11.3 | 3.4 | 5.3 | -------------------------------------------------------------------------------- | Loans repaid | -2.0 | -4.3 | -7.4 | -------------------------------------------------------------------------------- | Increase in equity | 0.0 | 2.5 | 2.5 | -------------------------------------------------------------------------------- | Sale of treasury shares | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Payment of financial | | | | -------------------------------------------------------------------------------- | leasing debts | -1.5 | -1.9 | -2.5 | -------------------------------------------------------------------------------- | Dividends paid | -1.1 | -0.8 | -0.8 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM | | | | -------------------------------------------------------------------------------- | FINANCING | 6.8 | -1.1 | -2.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGE IN LIQUID FUNDS | 0.2 | -1.8 | -1.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds, beginning | 1.0 | 2.7 | 2.7 | -------------------------------------------------------------------------------- | Liquid funds, end | 1.2 | 0.9 | 1.0 | -------------------------------------------------------------------------------- COMPANY ACQUISITION Rocla acquired in June 2008 all the shares of the Danish company VB Trucks A/S. The purchase price definition and the allocation of the fair values have been revised during the third quarter of 2008. -------------------------------------------------------------------------------- | Fair value of acquired assets | | | | -------------------------------------------------------------------------------- | | Book | Allocated | Values | -------------------------------------------------------------------------------- | | values | fair | total | -------------------------------------------------------------------------------- | | | values | | -------------------------------------------------------------------------------- | Intangible assets | 0.0 | 0.4 | 0.4 | -------------------------------------------------------------------------------- | Property, plant and equipment | 2.4 | 3.3 | 5.7 | -------------------------------------------------------------------------------- | Other assets | 7.7 | 1.4 | 9.1 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | -3.4 | -1.1 | -4.5 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | -4.5 | -3.4 | -7.9 | -------------------------------------------------------------------------------- | Net assets | 2.1 | 0.6 | 2.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Purchase price incl. direct costs | | | 3.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Goodwill | | | 0.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RELATED PARTY INFORMATION | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Business transactions with owner companies holding a significant position of | | influence in the Group. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (Meur) | 1-9/08 | 1-9/07 | 1-12/07 | -------------------------------------------------------------------------------- | Sales to closely | | | | -------------------------------------------------------------------------------- | related parties | 41.5 | 40.7 | 55.8 | -------------------------------------------------------------------------------- | Purchases from closely | | | | -------------------------------------------------------------------------------- | related parties | 6.8 | 6.4 | 11.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CONTINGENT COMMITMENTS (Meur) | | | -------------------------------------------------------------------------------- | | 9/08 | 9/07 | 12/07 | -------------------------------------------------------------------------------- | For own debt: | | | | -------------------------------------------------------------------------------- | Mortgages on real estate | 0.5 | 0.5 | 0.5 | -------------------------------------------------------------------------------- | Corporate mortgages | 9.4 | 9.4 | 9.4 | -------------------------------------------------------------------------------- | Shares pledged (book keeping | 3.2 | 0.0 | 0.0 | | value) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other own commitments: | | | | -------------------------------------------------------------------------------- | Leasing commitments | 0.6 | 0.8 | 0.7 | -------------------------------------------------------------------------------- | Repurchase commitments | 0.8 | 0.6 | 0.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- No pledges or other commitments have been extended on behalf of management, shareholders or affiliated companies. -------------------------------------------------------------------------------- | INCOME STATEMENT BY | | | | | | | | QUARTER | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 7-9 | 4-6 | 1-3 | 10-12 | 7-9 | 4-6 | 1-3 | -------------------------------------------------------------------------------- | | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | -------------------------------------------------------------------------------- | NET SALES | 31.0 | 34.3 | 31.6 | 35.4 | 28.4 | 30.9 | 30.3 | -------------------------------------------------------------------------------- | Change in finished | | | | | | | | | goods | | | | | | | | -------------------------------------------------------------------------------- | and inventories | 0.0 | -1.7 | 1.8 | -1.7 | 0.6 | -0.3 | -0.3 | -------------------------------------------------------------------------------- | Other operating | | | | | | | | -------------------------------------------------------------------------------- | income | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | -------------------------------------------------------------------------------- | Materials and | -16. | -18.3 | -20.2 | -19.3 | -17.8 | -18.8 | -18.7 | | services | 4 | | | | | | | -------------------------------------------------------------------------------- | Personnel expenses | -7.0 | -7.7 | -6.5 | -7.1 | -5.2 | -6.1 | -5.8 | -------------------------------------------------------------------------------- | Depreciation | -2.7 | -1.9 | -1.9 | -1.8 | -1.8 | -1.8 | -1.8 | -------------------------------------------------------------------------------- | Other operating | | | | | | | | -------------------------------------------------------------------------------- | expenses | -3.8 | -3.8 | -3.4 | -4.0 | -2.9 | -2.9 | -2.9 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 1.2 | 1.0 | 1.4 | 1.5 | 1.4 | 1.1 | 0.9 | -------------------------------------------------------------------------------- | Financial expenses | | | | | | | | -------------------------------------------------------------------------------- | (net) | -0.7 | -0.4 | -0.7 | -0.5 | -0.5 | -0.4 | -0.4 | -------------------------------------------------------------------------------- | INCOME BEFORE TAXES | 0.4 | 0.5 | 0.7 | 1.0 | 0.9 | 0.8 | 0.5 | -------------------------------------------------------------------------------- | Income taxes | -0.1 | -0.1 | -0.2 | -0.3 | -0.2 | -0.2 | -0.1 | -------------------------------------------------------------------------------- | INCOME FOR THE | 0.4 | 0.4 | 0.5 | 0.8 | 0.7 | 0.6 | 0.3 | | PERIOD | | | | | | | | -------------------------------------------------------------------------------- | EARNINGS PER SHARE | | | | | | | | -------------------------------------------------------------------------------- | euros | 0.08 | 0.10 | 0.11 | 0.19 | 0.16 | 0.14 | 0.09 | -------------------------------------------------------------------------------- | EARNINGS PER SHARE | | | | | | | | -------------------------------------------------------------------------------- | euros, diluted | 0.08 | 0.10 | - | - | - | - | 0.09 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES | 9/2008 | 9/2007 | 12/2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net sales, Meur | 96.8 | 89.6 | 124.9 | -------------------------------------------------------------------------------- | Operating profit, Meur | 3.5 | 3.4 | 4.9 | -------------------------------------------------------------------------------- | % of net sales | 3.6 | 3.8 | 3.9 | -------------------------------------------------------------------------------- | Income before taxes, Meur | 1.7 | 2.2 | 3.2 | -------------------------------------------------------------------------------- | % of net sales | 1.7 | 2.4 | 2.6 | -------------------------------------------------------------------------------- | Equity/share, euros | 6.46 | 6.21 | 6.38 | -------------------------------------------------------------------------------- | Equity/assets, % | 24.9 | 31.0 | 32.0 | -------------------------------------------------------------------------------- | Return on equity, % p.a. | 6.2 | 8.7 | 9.4 | -------------------------------------------------------------------------------- | Return on investment, % p.a. | 7.7 | 7.9 | 8.6 | -------------------------------------------------------------------------------- | Gross investments, Meur | 6.1 | 3.4 | 4.8 | -------------------------------------------------------------------------------- | Personnel, | | | | -------------------------------------------------------------------------------- | average | 588 | 499 | 505 | -------------------------------------------------------------------------------- | Personnel, | | | | -------------------------------------------------------------------------------- | end of period | 649 | 507 | 521 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OTHER DATA | 9/08 | 9/07 | 12/07 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Order book, Meur | 22.2 | 27.4 | 24.2 | -------------------------------------------------------------------------------- | Shares, 1,000 | | | | -------------------------------------------------------------------------------- | average | 4 235 | 4002 | 4119 | -------------------------------------------------------------------------------- | Shares, 1,000 | | | | -------------------------------------------------------------------------------- | diluted, average | 4 219 | - | - | -------------------------------------------------------------------------------- | Shares, 1,000 | | | | -------------------------------------------------------------------------------- | end of period | 4 236 | 4230 | 4234 | -------------------------------------------------------------------------------- Treasury shares are eliminated from the share numbers. FINANCIAL DISCLOSURE The Financial Statements Bulletin for 2008 will be published on February 11, 2009. Järvenpää, October 23, 2008 ROCLA OYJ Board of Directors Tapio Rummukainen President and CEO For additional information, contact: Tapio Rummukainen, President and CEO phone +358 20 778 1370 Hilkka Webb, CFO, phone +358 20 778 1316