STOCK EXCHANGE RELEASE Free for publication on February 19, 2013, at 8.00 am (CET+1) ELEKTROBIT CORPORATION (EB) IS CHANGING THE METHOD OF CONSOLIDATION FOR THE JOINTLY OWNED COMPANY OF EB AND AUDI, WHICH WILL DECREASE THE CONSOLIDATED NET SALES AND OPERATING RESULT OF EB GROUP Elektrobit Corporation (EB) will apply the new IFRS10 and IFRS11 standards from the beginning of 2013 and will consolidate e.solutions GmbH, a jointly owned company with Audi Electronics Venture GmbH (AEV), applying the proportionate consolidation method. As a result of the change in the method of consolidation, the proportion of net sales and operating result of e.solutions GmbH consolidated into EB's consolidated financial statements will decrease from the previous 100% to 51%. According to the rules of proportionate consolidation method, the consolidated statement will also include 49% of the net sales of other EB group companies to e.solutions GmbH. In 2012, the EB group's net sales from continuing operations was EUR 185.4 million and the operating profit from continuing operations was EUR 2.5 million. If the proportionate consolidation method would have been applied for e.solutions GmbH already in 2012, the consolidated net sales of EB group would have been EUR 11.6 million and the operating profit EUR 1.4 million less than was the case when the full consolidation method was applied, as presented above. In 2012, the external net sales of e.solutions GmbH was EUR 34.6 million and the operating profit EUR 2.9 million. In the financial reports of 2013, EB will present the year-on-year information of income statement and balance sheet with pro forma principle, assuming that e.solutions GmbH would have been consolidated to EB group according to the rules of proportionate consolidation already in 2012. Elektrobit Corporation's subsidiary company Elektrobit Automotive GmbH holds a 51% stake in e.solutions GmbH, with AEV holding the remaining 49%. Previously, since its establishment in 2009, e.solutions GmbH has been included in EB's consolidated financial statements as subsidiary and it has been consolidated in full. The new IFRS10 and IFRS 11 standards for consolidated financial statements and joint arrangements will take effect on 1(st) of January 2014, but they may be applied as of 1(st) of January 2013. The accounting standard IFRS 10 sets out the rules for presenting and preparing consolidated financial statements when an entity controls one or more other entities. IFRS11 establishes principles for financial reporting by parties to a joint arrangement. According to the standard, joint arrangements are defined either as "joint ventures" or "joint operations". e.solutions GmbH is deemed to fulfil the criteria of a "joint operation", whereby it is required that a proportionate consolidation method be applied at the latest when the new standard takes effect. The change in the method of consolidation as presented above has been taken into account in the 2013 outlook presented in financial statement bulletin published today. In the 2013 outlook 2012 net sales and operating result, presented for comparison, are pro forma figures, assuming that proportionate consolidation method would have been applied already in 2012. The EB's financial statement bulletin 2012 is available on the company website at www.elektrobit.com. Oulu, February 19, 2013 Elektrobit Corporation Jukka Harju CEO Further information: Jukka Harju CEO Tel. +358 40 344 5466 Distribution: NASDAQ OMX Helsinki Principal media Elektrobit (EB) EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales from continuing operations in 2012 totaled MEUR 185.4. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com e.solutions GmbH is currently developing infotainment software and provide system engineering and systems integration services for VW Group car models. [HUG#1679186]
ELEKTROBIT CORPORATION (EB) IS CHANGING THE METHOD OF CONSOLIDATION FOR THE JOINTLY OWNED COMPANY OF EB AND AUDI, WHICH WILL DECREASE THE CONSOLIDATED NET SALES AND OPERATING RESULT OF EB GROUP
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