PONSSE PLC FINANCIAL STATEMENT RELEASE 10 FEBRUARY 2009, 9:00 a.m.
PONSSE'S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2008
- Net sales amounted to EUR 293.0 (310.1) million.
- Net sales during 10-12/2008 were EUR 76.8 (10-12/2007, 96.1) million.
- Operating profit was EUR 13.6 (37.1) million and accounted for 4.7 (12.0) per
cent of the net sales.
- Operating result for 10-12/2008 was EUR -4.2 (10-12/2007, 13.1) million and
accounted for -5.4 (13.7) per cent of the net sales.
- Profit before taxes was EUR 6.3 (36.4) million.
- Earnings per share were EUR 0.16 (0.95).
- Equity ratio stood at 38.4 per cent (50.3 per cent).
- Order books were valued at EUR 41.5 (110.1) million.
- The Board of Directors proposes that the Annual General Meeting authorise the
Board of Directors to decide on the distribution of dividends amounting to a
maximum of EUR 0.10 per share during 2009.
PRESIDENT AND CEO JUHO NUMMELA:
During the last quarter, there was a quick downturn in the export markets as a
result of the global financial crisis. Machinery deliveries concentrated on the
Finnish and Swedish markets. Net sales decreased compared with the corresponding
period, and operating profit turned into a loss as a result of small delivery
volumes and high operating costs in relation to the prevailing situation. Net
sales for the year were lower than in the preceding year. This was to be
expected, given the weak demand during the latter half of the year. Order intake
was weak during the last quarter.
Following the results of the first round of employer-employee negotiations, the
factory was shut down using temporary lay-offs. The second round of
employer-employee negotiations was initiated during the last quarter of the year
in order to further adjust the operations. The employer-employee negotiations
are part of the Group-level programme related to reducing operating costs. Its
goal is to adjust the company's operations to the market situation that will
prevail after the financial crisis.
The concentration of operations began during the last quarter of the year as the
Brazilian assembly and R&D operations were transferred to Vieremä. The
operations of subsidiary companies in North and South America were also adjusted
during the last quarter. Adjustment measures regarding other subsidiaries will
continue throughout spring.
NET SALES
Consolidated net sales for the year amounted to EUR 293.0 (310.1) million, which
is 5.5 per cent less than in the comparison period. International business
operations accounted for 63.3 (70.6) per cent of total net sales. Net sales for
the fourth quarter totalled EUR 76.8 (96.1) million, which is 20.1 per cent less
than in the previous year.
Net sales were accumulated per region as follows: Nordic countries 54.7 (47.2)
per cent, the rest of Europe 32.0 (41.0) per cent, North and South America 10.8
(10.2) per cent and other countries 2.5 (1.6) per cent.
The development of the economy quickly slowed down during the latter half of the
year. This was also strongly reflected in the demand for forest machines. The
machine sales volumes were clearly lower in the latter half of the year when
compared to the previous year. The only exceptions were Scandinavian main
markets where business was satisfactory. Demand in Central Europe and Russia was
clearly more modest during the period than in the previous year. There were no
significant changes in the market situation in North America during the period
when compared with the previous year. There was less demand than usual. The
global developments in economy were also reflected on the new market areas,
South America and Asia. New investments in chemical wood processing were
postponed and the existing production capacity was adjusted for the weaker
demand.
PROFIT PERFORMANCE
Operating profit was EUR 13.6 (37.1) million. Operating result for the fourth
quarter amounted to EUR -4.2 (10-12/2007, 13.1) million. Operating profit
accounted for 4.7 (12.0) per cent of net sales in the period under review.
Return on capital employed (ROCE) stood at 7.5 (37.4) per cent.
Staff costs for the period under review totalled EUR 48.2 (42.5) million, and
other operating expenses EUR 33.6 (30.4) million. Net financial income and
expenses totalled EUR -7.5 (-1.7) million, of which EUR -2.7 (-1.5) million
consisted of direct financing costs. Exchange rate gains and losses due to
exchange rate fluctuations are recognised in financial items. Their net effect
on profit amounts to EUR -4.8 (-0.6) million. The negative change is primarily
due to the rapid weakening of the Russian rouble and the Brazilian real in
November-December 2008. Profit for the financial period totalled EUR 4.4 (26.5)
million. Diluted and undiluted earnings per share (EPS) were EUR 0.16 (0.95).
The company does not have any items that could have a dilutive effect on the
earnings per share.
BALANCE SHEET AND FINANCIAL POSITION
At the end of the period under review, the consolidated balance sheet total
amounted to EUR 174.8 (153.9) million. Inventories stood at EUR 88.3 (65.6)
million. Trade receivables totalled EUR 22.2 (29.3) million and liquid assets
stood at EUR 8.1 (12.6) million. The amount of Group equity was EUR 67.1 (76.5)
million. Parent company equity stood at EUR 63.4 (70.8) million. The amount of
interest-bearing liabilities was EUR 72.9 (33.9) million. The parent company's
net receivables from other Group companies stood at EUR 57.6 (41.3) million. The
parent company's receivables from subsidiaries mainly consist of current trade
receivables that have been recognised at carrying value. As a result of losses
due to restructuring of subsidiaries, the parent company recognised a credit
loss of EUR 6.0 million in 2008. Consolidated net liabilities totalled EUR 64.6
(19.5) million, and the debt-equity ratio (gearing) was 96.6 (27.8) per cent.
The equity ratio stood at 38.4 per cent (50.3 per cent) at the end of the period
under review.
Cash flow from business operations amounted to EUR -20.8 (19.0) million. Cash
flow from investing activities amounted to EUR -8.5 (-6.4) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 224.4 (361.2) million, while period-end
order books were valued at EUR 41.5 (110.1) million. The order books included
dealers' minimum purchase commitments, based on previous practice.
DISTRIBUTION NETWORK
As part of its adjustment and efficiency measures, the company decided to
transfer the R&D and assembly operations of debarking harvester heads from
Brazil to the Vieremä factory in Finland. Ponsse Latin America Ltda continues
its operations as a subsidiary providing sales and maintenance services.
The business name of the Uruguayan subsidiary, Povery S.A., was changed to
Ponsse Uruguay S.A. during the review period.
No other changes took place in the Group structure.
The subsidiaries included in the Ponsse Group are Epec Oy, Finland; OOO Ponsse,
Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd, Hong
Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse North
America, Inc., United States of America; Ponssé S.A.S., France; Ponsse UK Ltd,
Great Britain; and Ponsse Uruguay S.A., Uruguay. Sunit Oy in Kajaani, Finland,
is an affiliated company in which Ponsse Plc has a holding of 34 per cent.
CAPITAL EXPENDITURE AND R&D
The Group's R&D expenses totalled EUR 7.6 (5.7) million during the period under
review. The amount of R&D expenses capitalised during the period was EUR 1,230
(851) thousand.
Capital expenditure totalled EUR 8.5 (6.6) million.
Investments were in particular made in the production machinery and equipment as
well as maintenance in the Vieremä factory and in the factory of the subsidiary
Epec Oy. Normal maintenance investments were made during the period in IT
systems.
GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting was held in Vieremä on 29 April 2008. The meeting
dealt with matters stipulated in Section 10 of Ponsse Plc's Articles of
Association. The Annual General Meeting decided to distribute a dividend of EUR
0.50 per share for the period ending on 31 December 2007.
The Annual General Meeting authorised the Board of Directors to purchase a
maximum of 250,000 of the Company's own shares with the Company's unrestricted
equity. The purchase authorisation is valid until the next Annual General
Meeting; however, no later than 30 June 2009. The Annual General Meeting also
authorised the Board of Directors to decide on the assignment of a maximum of
300,000 of the Company's own shares. The authorisation is also valid until the
next Annual General Meeting; however, no later than 30 June 2009.
The Annual General Meeting decided to pay a bonus to the Company's staff for
2007. The amount of the bonus was confirmed at EUR 90 for each month of
employment.
BOARD OF DIRECTORS AND AUDITORS
Ponsse Plc's Board of Directors comprised six members during the financial
period: Maarit Aarni-Sirviö, Nils Hagman, Ilkka Kylävainio, Seppo Remes, Einari
Vidgrén and Juha Vidgrén. Einari Vidgrén acted as Chairman of the Board and Juha
Vidgrén as Vice Chairman.
The Board of Directors did not establish any committees or commissions from
among its members.
The Board of Directors convened eleven times during the financial period. The
attendance rate was 86.4 per cent.
Ernst & Young Oy acted as the company auditors with Eero Huusko, Authorised
Public Accountant, as the principal auditor.
MANAGEMENT
The following changes took place in the company's operative management during
the period under review: Doctor of Technology Juho Nummela was appointed
President and CEO. Jarmo Vidgrén was appointed Sales and Marketing Director and
Deputy CEO, Juha Haverinen was appointed Factory Director. The appointments took
effect on 1 June 2008.
Doctor of Technology Juha Inberg was appointed the company's R&D and Technology
Director and member of the Management Team from 1 January 2009.
As of 1 July 2008, Jaakko Laurila was appointed Vice President responsible for
the Russian region and President and CEO of OOO Ponsse.
During the period under review, the following persons were members of the Group
Management Team: Purchasing and Logistics Director Pasi Arajärvi, Factory
Director Juha Haverinen (from 1 June 2008), Regional Director for South and
Central America and President and CEO of Ponssé S.A.S. Tapio Ingervo (until 1
June 2008), Director for strategy and Customer Cooperation Hannu Kivelä (from 1
June 2008, until 13 January 2009), Communications Director Jari Mononen, Service
Director Juhani Mäkynen, Factory Director (until 1 June 2008), President & CEO
(from 1 June 2008) Juho Nummela, HR Director Paula Oksman, CFO Mikko Paananen,
Technology and R&D Director Seppo Taatila (until 1 January 2009), President &
CEO Arto Tiitinen (until 1 June 2008), and Sales and Marketing Director Jarmo
Vidgrén.
During the year under review, the following persons were members of the Group
Sales Management Team: Cláudio Costa (Latin America), Tapio Ingervo (Central and
Southern Europe), Marko Mattila (North America), Jaakko Laurila (Russia from 1
June 2008), Mikko Laurila (Northern Europe from 1 June 2008; until then, Asia,
Oceania and Africa), Distribution Development Director Tapio Mertanen (from 1
June 2008), Service Director Juhani Mäkynen (from 1 June 2008),
President and CEO Arto Tiitinen (until 1 June 2008), Norbert Schalkx (Asia,
Oceania and Africa from 1 June 2008), Ville Siekkinen (Russia until 1 July 2008)
and Sales and Marketing Director Jarmo Vidgrén (Northern Europe until 1 June
2008, after that Head of the Sales Management Team).
PERSONNEL
The Group had an average staff of 1,044 (876) during the period and employed 981
(945) people at period-end.
The negotiations pursuant to the Act on Co-operation within Undertakings,
started on 16 October 2008 at the company's initiative, were completed on 30
October 2008. As a result of the negotiations, a decision was taken to implement
temporary lay-offs during the period 10 December 2008 - 15 May 2009. In Finland,
these lay-offs affect 320 employees and 125 clerical workers.
Due to weakening demand on the market, the company announced on 8 December 2008
that further employer-employee negotiations are to be started. The aim of the
negotiations is to secure the company's competitiveness and improve its
profitability.
SHARE PERFORMANCE
The trading volume of Ponsse Plc shares for 1 January - 30 December 2008
totalled 2,715,572, accounting for 9.7 per cent of the total number of shares.
Share turnover came to EUR 27.1 million, and the period's lowest and highest
share prices were EUR 4.25 and EUR 16.29, respectively.
At the end of the period, the share price stood at EUR 4.50 and market
capitalisation totalled EUR 126.0 million.
At the end of the reporting period the company had 47,900 own shares in its
possession.
In April 2008, the Board of Directors decided to implement a share-based
incentive scheme for key personnel of the Ponsse Group. The earning period of
the scheme began on 1 January 2008 and ends on 31 December 2010. Some 20 persons
are included in the scheme. Any incentive bonuses payable for the earning period
2008-2010 will be paid out in 2011, partly in company shares and partly in cash.
The part paid out in cash covers the taxes and tax-like levies payable for the
incentive. The benchmarks of the scheme are the company's share price (adjusted
for dividends), the Group cash flow and net sales of maintenance services. The
incentive bonuses will correspond to a maximum of approximately 120,000 Ponsse
shares (also including the part paid in cash).
DISCLOSURE NOTIFICATIONS
No such notifications of changes in share holdings were brought to the company's
attention during the review period that would require issuing a disclosure
notification referred to in Chapter 2, section 9 of the Securities Markets Act.
QUALITY AND ENVIRONMENT
Ponsse observes in its operations the ISO 9001:2000 quality standard, the ISO
14001 environmental system standard and the OHSAS 18001 occupational safety and
health standard, the first of which is certified. DNV conducted an audit related
to the ISO 9001 quality system during the period.
During the year under review, an external expert assessed the functionality of
the company's environmental system. Development work for the system continued.
The company complies with environmental legislation in its operations.
Regulatory amendments are continuously monitored and the necessary actions are
taken accordingly. In accordance with the company's environmental policy, Ponsse
aims at developing and manufacturing products which in use exert as little load
on the environment as possible.
Practices and production processes are developed through internal audits and
supplier audits. The resources invested in auditing have been considerable, and
they have helped the company create new and better practices, both for its own
operations and those of its suppliers. Production processes are being developed
utilising the method of continual improvement. Good results have been achieved
during the period. The Quality Assurance system introduced early in the year
stresses the importance of proactive measures. The Lean Six Sigma quality
improvement scheme was initiated during the year. The results from the first
projects have been good.
The company continued its close cooperation with Occupational Healthcare. The
focus was on developing preventive OHC with active patient participation, using
training among other measures. The sick absences of personnel working in Finland
reduced considerably during 2008.
The Group-level Data Security Team is responsible for the general development of
information security, maintenance of the Group information security policy and
coordination of the information security training.
GOVERNANCE
The company's Board of Directors has confirmed the introduction of a new code of
governance that entered into force on 1 January 2009. The code is based on the
recommendation approved by the Securities Market Association in October 2008,
entitled ”Suomen listayhtiöiden hallinnointikoodi (Corporate Governance)”.
The new code of governance can be viewed on Ponsse's website in the Investors
section.
RISK MANAGEMENT
The Ponsse Group's risk management policy seeks to maintain and further develop
a practical and comprehensive system for the management and reporting of risks.
This entails a risk assessment for each function and unit, integrating risk
management into the business processes, constant quality development and
disseminating information on best practices.
Internal supervision constitutes an essential part of risk management. The Board
of Directors is responsible for the organisation of the operations and their
adequacy, whilst the President and CEO is responsible for the implementation of
supervision in practice. Methods of internal supervision include internal
guidelines, reporting and various technical supervision systems related to
activities. An internal auditor is responsible for the company's internal
supervision in practice, and he reports to the Board of Directors.
BUSINESS RISKS AND THEIR MANAGEMENT
The global uncertainty regarding economy and finances has significantly
increased during the last few months and weeks. This uncertainty strongly
reflects on the company's business. The predictability of business is
fundamentally lower than in normal circumstances. Estimates regarding the pace
at which the economy will pick up are uncertain.
The declining economic trend has increased the risks associated with the
functionality of the subcontractor and supplier network. Ponsse aims to manage
and minimise these risks through partnership cooperation. The financial standing
of suppliers is monitored more intensely than normal. The company has also
started the process of screening alternative suppliers. As part of its risk
management efforts related to the availability of certain key components, the
company has chosen to manufacture these components in-house.
The decreasing production and invoicing volumes increase the parent company's
and subsidiaries' risk regarding business profitability. A Group-level
adjustment programme has been initiated in order to stabilise the situation. It
involves adjusting the operating expenses for the changed demand. Should the
markets further deteriorate from the current exceptionally poor state, further
intensification and extension of the adjustment and efficiency measures will
have to be considered. The parent company monitors the changes in asset value of
Group receivables and their associated risk of impairment.
The developments in maintenance services and spare part sales have a causal link
with the utilisation rates of machines. The general economic situation may lead
to lower harvesting volumes and utilisation rates.
The economic uncertainty has increased currency rate fluctuations and borrowing
costs. The key objectives of the company's financing risk management include
controlling the liquidity, interest and currency risks. Ponsse has ensured its
liquidity by means of credit limit agreements with a number of financial
institutions. The company's financial liabilities are exclusively guaranteed by
covenants. In order to minimise the impact of any adverse changes in interest
rates the company uses interest rate swaps and credits tied to different
reference rates. Derivative contracts and currency-denominated credits are used
to minimise the adverse effects of changes in exchange rates. The financial
unrest increases the uncertainties related to sales receivables. The terms and
conditions of sales against invoice and receivables monitoring have been
reviewed.
EVENTS AFTER THE PERIOD UNDER REVIEW
The company announced on 3 February 2009 that the employer-employee negotiations
initiated on 8 December 2008 have been completed. The negotiations resulted in
the termination of 158 contracts of employment in Finland. In addition to the
terminations, the temporary lay-offs will continue in 2009. The cost effects of
operational adjustments will be recognised during the financial period of 2009.
Subsidiary company Epec Oy announced on 5 February 2009 that it will initiate
employer-employee negotiations. The goal is to adjust the company's costs to the
lower demand.
OUTLOOK FOR THE FUTURE
The international economic situation makes it more difficult to predict the
company's business operations. The revival of the forest machine markets will
decidedly depend on the stabilisation of financial markets and normalisation of
real economy.
The company's own cost-cutting measures will take full effect during the latter
half of 2009. The order book is considerably smaller at the beginning of 2009
than the year before.
The company expects that the net sales for the first six months will be poor,
probably resulting in making a loss. The outlook for the latter half of the year
is uncertain.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at the company's registered office at
Ponssentie 22, 74200 Vieremä, on 28 April 2009, commencing at 10:00 a.m.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFIT
The Board of Directors of Ponsse Plc proposes that the Annual General Meeting
authorise the Board of Directors to decide on the distribution of dividends
amounting to a maximum of EUR 0.10 per share during 2009.
PONSSE GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
--------------------------------------------------------------------------------
| NET SALES | | 76,795 | 96,087 | 293,015 | 310,053 |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in | -10,337 | -3,661 | 7,885 | 2,159 |
| inventories of finished goods | | | | |
| and work in progress | | | | |
--------------------------------------------------------------------------------
| Other operating income | | 1,150 | 580 | 2,608 | 1,326 |
--------------------------------------------------------------------------------
| Raw materials and | | -48,444 | -57,948 | -203,082 | -199,253 |
| services | | | | | |
--------------------------------------------------------------------------------
| Expenditure on | -12,232 | -12,244 | -48,175 | -42,538 |
| employment-related benefits | | | | |
--------------------------------------------------------------------------------
| Depreciation | | -1,337 | -1,106 | -5,037 | -4,270 |
--------------------------------------------------------------------------------
| Other operating | | -9,743 | -8,582 | -33,586 | -30,398 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | | -4,150 | 13,127 | 13,628 | 37,080 |
--------------------------------------------------------------------------------
| Share of results of associated | 40 | 21 | 91 | 1,002 |
| companies | | | | |
--------------------------------------------------------------------------------
| Financial income and | | -5,384 | -838 | -7,462 | -1,698 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | -9,492 | 12,310 | 6,258 | 36,384 |
--------------------------------------------------------------------------------
| Income taxes | | 3,164 | -3,102 | -1,907 | -9,907 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | | -6,329 | 9,208 | 4,351 | 26,477 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted and undiluted | | -0.23 | 0.33 | 0.16 | 0.95 |
| earnings per share | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (EUR 1,000)
--------------------------------------------------------------------------------
| | IFRS | IFRS | |
--------------------------------------------------------------------------------
| ASSETS | 31.12.08 | 31.12.07 | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 6,123 | 4,262 | |
--------------------------------------------------------------------------------
| Goodwill | 3,683 | 3,737 | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 27,558 | 25,946 | |
--------------------------------------------------------------------------------
| Financial assets | 109 | 128 | |
--------------------------------------------------------------------------------
| Holdings in associated companies | 1,889 | 2,156 | |
--------------------------------------------------------------------------------
| Non-current receivables | 1,820 | 403 | |
--------------------------------------------------------------------------------
| Deferred tax assets | 3,121 | 1,686 | |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 44,303 | 38,318 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 88,308 | 65,635 | |
--------------------------------------------------------------------------------
| Trade receivables | 22,155 | 29,276 | |
--------------------------------------------------------------------------------
| Income tax receivables | 5,023 | 861 | |
--------------------------------------------------------------------------------
| Other current receivables | 6,916 | 7,191 | |
--------------------------------------------------------------------------------
| Liquid assets | 8,095 | 12,633 | |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 130,497 | 115,595 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 174,800 | 153,914 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 7,000 | 7,000 | |
--------------------------------------------------------------------------------
| Other reserves | -646 | 19 | |
--------------------------------------------------------------------------------
| Translation differences | -1,725 | -943 | |
--------------------------------------------------------------------------------
| Retained earnings | 62,484 | 70,456 | |
--------------------------------------------------------------------------------
| EQUITY OWNED | | | |
--------------------------------------------------------------------------------
| BY PARENT COMPANY SHAREHOLDERS | 67,113 | 76,532 | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 67,113 | 76,532 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 26,140 | 16,717 | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 556 | 768 | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 861 | 30 | |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES | 27,556 | 17,515 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 46,769 | 17,225 | |
--------------------------------------------------------------------------------
| Provisions | 6,058 | 4,341 | |
--------------------------------------------------------------------------------
| Tax liabilities for the period | 76 | 1,752 | |
--------------------------------------------------------------------------------
| Trade creditors and other current | 27,228 | 36,548 | |
| liabilities | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 80,131 | 59,867 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 174,800 | 153,914 | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS | |
--------------------------------------------------------------------------------
| | | 1-12/08 | 1-12/07 | |
--------------------------------------------------------------------------------
| BUSINESS OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | 4,351 | 26,477 | |
--------------------------------------------------------------------------------
| Adjustments: | | | | |
--------------------------------------------------------------------------------
| Financial income and | | 7,462 | 1,698 | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Share of the result of associated | -91 | -1,002 | |
| companies | | | |
--------------------------------------------------------------------------------
| Depreciation | | 5,037 | 4,270 | |
--------------------------------------------------------------------------------
| Income taxes | | 2,378 | 9,897 | |
--------------------------------------------------------------------------------
| Other adjustments | | -1,827 | -717 | |
--------------------------------------------------------------------------------
| Cash flow before change in working | 17,308 | 40,623 | |
| capital | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in working capital: | | | | |
--------------------------------------------------------------------------------
| Change in current | | |
--------------------------------------------------------------------------------
| non-interest-bearing | | 7,086 | -13,091 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Change in inventories | | -22,673 | -7,020 | |
--------------------------------------------------------------------------------
| Change in current | | |
--------------------------------------------------------------------------------
| non-interest-bearing | | -9,718 | 8,220 | |
| creditors | | | | |
--------------------------------------------------------------------------------
| Change in provisions for | | 1,717 | 824 | |
| liabilities and charges | | | | |
--------------------------------------------------------------------------------
| Interest received | | 281 | 298 | |
--------------------------------------------------------------------------------
| Interest paid | | -2,450 | -1,463 | |
--------------------------------------------------------------------------------
| Other financial items | | -4,966 | -505 | |
--------------------------------------------------------------------------------
| Income taxes paid | | -7,355 | -8,886 | |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM BUSINESS | | -20,770 | 19,001 | |
| OPERATIONS (A) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTMENTS | | | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible | -8,509 | -6,565 | |
| assets | | | |
--------------------------------------------------------------------------------
| Investments in other assets | 27 | -14 | |
--------------------------------------------------------------------------------
| Repayment of loan | | 0 | 0 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Dividends received | | 0 | 178 | |
--------------------------------------------------------------------------------
| CASH OUTFLOW FROM INVESTING | | -8,481 | -6,401 | |
| ACTIVITIES (B) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCING | | | | |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | | |
--------------------------------------------------------------------------------
| non-current loans | | 29,422 | 8,855 | |
--------------------------------------------------------------------------------
| Change in current | | | | |
--------------------------------------------------------------------------------
| interest-bearing liabilities | | 309 | -93 | |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | | |
--------------------------------------------------------------------------------
| non-current loans | | 10,253 | -5,735 | |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | 122 | -116 | |
--------------------------------------------------------------------------------
| Change in non-current receivables | -1,417 | -239 | |
--------------------------------------------------------------------------------
| Dividends paid | | -13,976 | -11,200 | |
--------------------------------------------------------------------------------
| NET CASH OUTFLOW FROM | | 24,713 | -8,529 | |
| FINANCING (C) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid assets | | -4,538 | 4,071 | |
| (A+B+C) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets on 1 Jan | | 12,633 | 8,562 | |
--------------------------------------------------------------------------------
| Liquid assets on 31 Dec | | 8,095 | 12,633 | |
--------------------------------------------------------------------------------
RECONCILIATION OF CHANGES IN EQUITY (EUR 1,000)
--------------------------------------------------------------------------------
| A = Share Capital | | | | | | |
--------------------------------------------------------------------------------
| B = Share premium and other | | | | | |
| reserves | | | | | |
--------------------------------------------------------------------------------
| C = Translation | | | | | | |
| differences | | | | | | |
--------------------------------------------------------------------------------
| D = Own shares | | | | | |
--------------------------------------------------------------------------------
| E = Retained earnings |
--------------------------------------------------------------------------------
| F = Equity | | | | | | |
--------------------------------------------------------------------------------
| | EQUITY OWNED BY PARENT COMPANY | | |
| | SHAREHOLDERS | | |
--------------------------------------------------------------------------------
| | A | B | C | D | E | F |
--------------------------------------------------------------------------------
| EQUITY 1 JAN 2008 | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 0 | 0 | -783 | 0 | 1,654 | 871 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| NET INCOME | | | | | | |
| RECOGNISED | | | | | | |
--------------------------------------------------------------------------------
| DIRECTLY IN EQUITY | 0 | 0 | -783 | 0 | 1,654 | 871 |
--------------------------------------------------------------------------------
| Net profit for the | 0 | 0 | | | 4,351 | 4,351 |
| period | | | | | | |
--------------------------------------------------------------------------------
| TOTAL RECOGNISED | 0 | 0 | -783 | 0 | 6,005 | 5,222 |
| INCOME AND | | | | | | |
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | 0 | -13,97 | -13,976 |
| distribution | | | | | 6 | |
--------------------------------------------------------------------------------
| Purchase of the | 0 | 0 | 0 | -665 | 0 | -665 |
| company's own | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 DEC 2008 | 7,000 | 20 | -1,726 | -665 | 62,484 | 67,113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY 1 JAN 2007 | 7,000 | 20 | -750 | 0 | 54,887 | 61,157 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation | 0 | 0 | -193 | 0 | 291 | 98 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| NET INCOME | | | | | | |
| RECOGNISED | | | | | | |
--------------------------------------------------------------------------------
| DIRECTLY IN EQUITY | 0 | 0 | -193 | 0 | 291 | 98 |
--------------------------------------------------------------------------------
| Net profit for the | 0 | 0 | | | 26,477 | 26,477 |
| period | | | | | | |
--------------------------------------------------------------------------------
| TOTAL RECOGNISED | 0 | 0 | -193 | 0 | 26,768 | 26,575 |
| INCOME AND | | | | | | |
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | 0 | -11,20 | -11,200 |
| distribution | | | | | 0 | |
--------------------------------------------------------------------------------
| Purchase of the | 0 | 0 | 0 | 0 | 0 | 0 |
| company's own | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 DEC 2007 | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | 31.12.08 | 31.12.07 | |
--------------------------------------------------------------------------------
| 1. LEASING COMMITMENTS | | | 5,903 | 2,519 | |
| (EUR 1,000) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. CONTINGENT LIABILITIES (EUR | | 31.12.08 | 31.12.07 | |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| Guarantees given on | | | 1,090 | 1,285 | |
| behalf of others | | | | | |
--------------------------------------------------------------------------------
| Repurchase commitments | | | 4,049 | 3,202 | |
--------------------------------------------------------------------------------
| Other commitments | | | 1,443 | 1,059 | |
--------------------------------------------------------------------------------
| TOTAL | | | 6,582 | 5,546 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. PROVISIONS (EUR | | | Guarantee provision | |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| 1.1.2008 | | | 4,341 | | |
--------------------------------------------------------------------------------
| Increase | | | 2,087 | | |
--------------------------------------------------------------------------------
| Used provisions | | | -370 | | |
--------------------------------------------------------------------------------
| 31.12.2008 | | | 6,058 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | | | 31.12.08 | 31.12.07 | |
--------------------------------------------------------------------------------
| R&D expenditure, MEUR | | 7.6 | 5.7 | |
--------------------------------------------------------------------------------
| Capital expenditure, MEUR | 8.5 | 6.6 | |
--------------------------------------------------------------------------------
| as % of net sales | | | 2.9 | 2.1 | |
--------------------------------------------------------------------------------
| Average number of | | | 1,044 | 876 | |
| employees | | | | | |
--------------------------------------------------------------------------------
| Order books, MEUR | | | 41.5 | 110.1 | |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 38.4 | 50.3 | |
--------------------------------------------------------------------------------
| Diluted and undiluted earnings per share, | 0.16 | 0.95 | |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | 2.40 | 2.73 | |
--------------------------------------------------------------------------------
FORMULAE FOR FINANCIAL INDICATORS
Average number of personnel:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Equity ratio, %:
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 | | | 1-12/08 | 1-12/07 | |
--------------------------------------------------------------------------------
| Ponsse Group | | | 224,4 | 361,2 | |
--------------------------------------------------------------------------------
The financial statements have been prepared in accordance with the IFRS
recognition and measurement principles; however, it does not comply with all of
the requirements of IAS 34.
The accounting policies for the financial statements 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 off and may therefore differ from those
given in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently known by the company and its current decisions and plans.
Although the company believes that the future expectations are well founded,
there is no certainty that the said expectations will prove correct. This is why
the results may significantly deviate from the assumptions included in the
future-oriented statements as a result of, among other things, changes in the
economy, markets, competitive conditions, legislation or currency exchange
rates.
Vieremä 10 February 2009
PONSSE PLC.
Juho Nummela
President and CEO
Mikko Paananen
CFO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690
Mikko Paananen, CFO, tel. +358 20 768 8648 or +358 400 817 036
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
