STOCK EXCHANGE RELEASE
Free for publication on August 2, 2007 at 8.00 am. (EEST)
ELEKTROBIT CORPORATION'S (EB) INTERIM REPORT JANUARY - JUNE 2007
(unaudited)
SUMMARY
Elektrobit Corporation's (EB) strategy was redefined in the spring
2006 as being one that focuses the business operations of EB and
concentrates on clear growth businesses in the Automotive and
Wireless Business Segments. In accordance with this strategy, EB has
sold its Production Solutions business as of June 1, 2007. Also
according to the strategy, EB has been developing the System Test
business separately and as the outcome of this has decided to focus
its operations on advanced wireless emulation and engineering tools.
To better describe the refined focus of the System Test Business
Unit, it was renamed as the Wireless Communications Tools Business
Unit and transferred under the Wireless Business Segment in June. As
the consequence of these two actions, the Test and Automation
Business Segment has ceased to exist in EB business portfolio. The
names of the Business Segments in focus were simplified to"Automotive" and "Wireless". Also, EB decided to formulate its RFID
and related industrial wireless network solutions businesses into a
business unit called Wireless Sensor Solutions within the Wireless
Business Segment. EB has now reached the business portfolio and
structure it was striving for, and this constitutes a solid base for
developing the company forward.
During the second quarter of 2007 EB continued its investments in
product research and development.
Also during the second quarter, in June, Elektrobit Corporation
purchased 100 per cent of the shares in DECOMSYS Beteiligungs GmbH
("DECOMSYS"). Additionally, EB purchased 100 per cent of the shares
in 7iD Technologies GmbH in June ("7iD"). The Transactions do not
have a significant impact on EB's balance sheet or result.
According to the IFRS5 standard, EB reports its financial results
divided between Discontinuing and Continuing Operations. In this
Interim Report, financial figures concerning the income statement of
2007 and 2006 are reported based on continuing operations, without
the Network Test (sold in November 2006) and Production Solutions
business figures. Discontinuing business figures are reported
separately in the Interim Report, after Continuing Operations' net
profit, so that the 2007 figures include Production Solutions figures
and the 2006 figures include the Network Test and Production
Solutions figures. In addition to the sales price of the Network Test
business, an additional amount, capped at EUR 12 million, is payable
in cash for EB upon the achievement of certain financial performance
targets for the Network Test Business between January 1, and December
31, 2007. According to the information given by the buyer of the
Network Test business, there is no additional amount payable for the
time period between January 1 and June 30, 2007. The final
determination on the possible additional amount will take place based
on an annual review.
The company's net sales for the second quarter stood at EUR 33.5
million (EUR 31.6 million in the second quarter of 2006). The
operating profit/loss amounted to EUR -6.6 million (EUR 2.8
million).
Comparisons between the Continuing Operations figures for the second
quarter of 2007 and the corresponding period in 2006:
- The net sales amounted to EUR 33.5 million (EUR 31.6 million; an
increase of EUR 1.9 million or 5.9 %). The net sales of the
Automotive Business Segment were EUR 11.2 million (EUR 8.8 million;
an increase of EUR 2.4 million or 27.6 %). The net sales of the
Wireless Business Segment were EUR 22.2 million (EUR 22.8 million; a
decrease of EUR 0.6 million or 2.8 %).
- Operating profit/ loss totalled EUR -6.6 million (EUR 2.8 million)
and was distributed as follows: the Automotive Business Segment EUR
-0.2 million (EUR 0.2 million), the Wireless Business Segment EUR
-7.1 million (EUR 2.0 million) and the other businesses EUR 0.7
million (EUR 0.6 million).
- Net cash flow from operations amounted to EUR -6.2 million
(EUR -2.9 million).
Comparisons between the Continuing Operations figures from January to
June 2007 and the figures for the corresponding period a year
earlier:
- Net sales amounted to EUR 64.5 million (EUR 59.5 million, an
increase of EUR 5.0 million or 8.3%). The net sales of the Automotive
Business Segment were EUR 21.8 million (EUR 17.5 million, an increase
of EUR 4.4 million or 25.0%) and the net sales of Wireless Business
Segment were EUR 42.2 million (EUR 41.9 million, an increase of
EUR 0.3 million or 0.8%).
- Operating profit/loss amounted to EUR -13.8 million (EUR 1.8
million, a decrease of EUR 15.6 million) and was distributed as
follows: the Automotive Business Segment EUR -0.8 million (EUR 0.8
million), the Wireless Business Segment EUR -13.5 million (EUR 0.8
million, a decrease of EUR 14.3 million) and other businesses EUR 0.4
million (EUR 0.2 million).
- Cash flow from operations amounted to EUR -11.7 million (EUR -1.9
million).
- Equity ratio was 69.6 % (63.0%).
QUARTERLY FIGURES, CONTINUING OPERATIONS
The quarterly distribution of the Group's Continuing Operations
overall net sales and profit:
+-------------------------------------------------------------------+
| MEUR | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 |
|--------------------+--------+--------+----------+--------+--------|
| Net sales | 33.5 | 31.0 | 33.3 | 27.6 | 31.6 |
|--------------------+--------+--------+----------+--------+--------|
| Operating profit | -6.6 | -7.2 | -5.3 | -2.5 | 2.8 |
| (loss) | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Result before | -6.3 | -6.4 | -4.9 | -2.4 | 2.3 |
| taxes | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Result for the | -6.4 | -6.3 | -4.6 | -2.2 | 1.3 |
| period | | | | | |
+-------------------------------------------------------------------+
The distribution of the Continuing Operations net sales by Business
Segment:
+------------------------------------------------------------+
| MEUR | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 |
|-------------+--------+--------+----------+--------+--------|
| Automotive | 11.2 | 10.6 | 11.3 | 10.1 | 8.8 |
|-------------+--------+--------+----------+--------+--------|
| Wireless | 22.2 | 20.1 | 22.0 | 17.5 | 22.8 |
|-------------+--------+--------+----------+--------+--------|
| Group Total | 33.5 | 31.0 | 33.3 | 27.6 | 31.6 |
+------------------------------------------------------------+
The distribution of the Continuing Operations net sales by market
area:
+---------------------------------------------------------+
| MEUR (%) | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 |
|----------+--------+--------+----------+--------+--------|
| Asia | 0.6 | 2.5 | 1.9 | 2.1 | 3.2 |
|----------+--------+--------+----------+--------+--------|
| Americas | 7.3 | 4.1 | 4.2 | 3.2 | 4.0 |
|----------+--------+--------+----------+--------+--------|
| Europe | 25.7 | 24.3 | 27.3 | 22.4 | 24.4 |
+---------------------------------------------------------+
Net sales (external) and operating profit development by Business
Segment and Other businesses of the Continuing Operations were as
follows:
+-------------------------------------------------------------------+
| MEUR | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 |
|--------------------+--------+--------+----------+--------+--------|
| Automotive | | | | | |
| Net sales | 11.2 | 10.6 | 11.3 | 10.1 | 8.8 |
| Operating profit | -0.2 | -0.6 | 0.9 | 0.5 | 0.2 |
| (loss) | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Wireless | | | | | |
| Net sales | 22.2 | 20.1 | 22.0 | 17.5 | 22.8 |
| Operating profit | -7.1 | -6.4 | -6.2 | -3.0 | 2.0 |
| (loss) | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Other businesses | | | | | |
| Net sales | 0.1 | 0.3 | 0.1 | 0.0 | 0.0 |
| Operating profit | 0.7 | -0.2 | 0.0 | -0.0 | 0.6 |
| (loss) | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Total | | | | | |
| Net sales | 33.5 | 31.0 | 33.3 | 27.6 | 31.6 |
| Operating profit | -6.6 | -7.2 | | -2.5 | 2.8 |
| (loss) | | | -5.3 | | |
+-------------------------------------------------------------------+
QUARTERLY FIGURES, DISCONTINUING OPERATIONS
Discontinuing Operations (Production Solutions in 2006 and 2007 and
Network Test in 2006) figures were as follows:
+-------------------------------------------------------------------+
| MEUR | 4-6/07 | 1-3/07 | 10-12/06 | 7-9/06 | 4-6/06 |
|--------------------+--------+--------+----------+--------+--------|
| Operative business | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Net sales | 6.7 | 8.6 | 15.9 | 21.1 | 23.0 |
|--------------------+--------+--------+----------+--------+--------|
| Operating profit | -1.6 | -1.6 | 0.9 | 3.7 | 3.7 |
| (loss) | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Result before | -1.7 | -1.7 | 0.7 | 3.6 | 3.6 |
| taxes | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Income taxes | -0.1 | -0.1 | -0.3 | -0.6 | -0.6 |
|--------------------+--------+--------+----------+--------+--------|
| Result for the | -1.8 | -1.8 | 0.4 | 2.9 | 3.0 |
| period | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Disposal gain | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Profit of the | 16.7 | | 73.7 | | |
| Discontinuing | | | | | |
| Operations | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Income taxes | -0.4 | | -0.5 | | |
|--------------------+--------+--------+----------+--------+--------|
| Profit after taxes | 16.4 | | 73.2 | | |
| of the | | | | | |
| Discontinuing | | | | | |
| Operations | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| | | | | | |
|--------------------+--------+--------+----------+--------+--------|
| Result for the | 14.5 | -1.8 | 73.7 | 2.9 | 3.0 |
| period | | | | | |
+-------------------------------------------------------------------+
The selling price of the Production Solutions business was EUR 29
million. Further details concerning the transaction were provided in
a stock exchange release on June 1, 2007.
STRATEGY UPDATE - BUSINESS SEGMENTS REDUCED TO TWO, FUTURE STRUCTURE
ESTABLISHED
EB's strategy was redefined in the spring 2006 as being one that
focuses the business operations of EB and concentrates on clear
growth businesses in the Automotive and Wireless Business Segments.
EB has now reached the business portfolio and structure it was
striving for, and this constitutes a solid base for developing the
company forward. EB is seeking for growth by becoming a focused
global leader in selected automotive and wireless businesses with a
balanced customer portfolio and scalable business models. During the
reporting period, none of the customer shares exceeded 15 per cent of
the net sales and further more, the summarized share of the ten
biggest customers is 58 per cent. EB is also searching for merger and
acquisition opportunities to strengthen the business growth.
As announced on June 1, after the sale of the Production Solutions
Business Unit, EB reduced the number of business segments to two,"Automotive" and "Wireless". The former System Test Business Unit was
refocused on advanced wireless emulation and engineering tools and it
was renamed as Wireless Communications Tools Business Segment and
transferred under the Wireless Business Segment. The Wireless Sensor
Solutions Business Unit was established also under the Wireless
Business Segment. Therefore, the Test and Automation Business Segment
ceased to exist. EB's reporting is based on the Automotive and
Wireless Business Segments and business units divided under them from
April 1, 2007 as follows:
+-------------------------------------------------------------------+
| Automotive Business Segment | Wireless Business Segment |
|-----------------------------+-------------------------------------|
| Automotive Software | Mobile Terminal Solutions Business |
| Business Unit | Unit |
|-----------------------------+-------------------------------------|
| | Radio Network Solutions Business |
| | Unit |
|-----------------------------+-------------------------------------|
| | Wireless Communications Tools |
| | Business Unit |
|-----------------------------+-------------------------------------|
| | Wireless Sensor Solutions Business |
| | Unit |
+-------------------------------------------------------------------+
ELEKTROBIT IS NOW PRONOUNCED EB - NEW BRAND STRATEGY AND VISUAL
IDENTITY
EB introduced in May 2007 its new brand strategy and visual identity
which is a continuum of the company's new strategy launched a year
ago. In the new identity and marketing communications, the company's
name Elektrobit Corporation is abbreviated into EB and it forms also
the main element of the company's new logo. The new EB brand
emphasises the company's purpose to enrich people's lives through
innovative technology, products and solutions which has been
crystallised into the slogan "Discover the Experience".
AUTOMOTIVE BUSINESS SEGMENT FROM JANUARY TO JUNE 2007
The Automotive Business Segment consists of in-car software products
and R&D services for the automotive industry with leading car
manufacturers, car electronics (Tier 1) and automotive chipset
suppliers as customers.
During the first half, the Automotive Business Segment continued to
grow confirming the potential of this market. Net sales during the
period under review amounted to EUR 21.8 million (EUR 17.5 million),
which represents a growth of 25.0 per cent and the operating loss was
EUR -0.8 million (EUR 0.8 million) due to continued strong
investments in the R&D of automotive software platform products.
Automotive Software Business Unit from January to June 2007
The Automotive Software Business Unit consists of software products
and R&D services for the needs of the automotive industry.
The products include the tresos® product family of HMI (Human Machine
Interface) design tools and software components used for the
development of electronic control units (ECU) for passenger cars, as
well as StreetDirector, which is a hybrid navigation software for
in-car navigation, Personal Navigation Devices (PND), Personal
Digital Assistants (PDA) and smartphones. The R&D services business
covers in-car infotainment and body control applications.
In February EB presented its tresos® ECU AUTOSAR (Automotive Open
System Architecture) Suite 2007 for the AUTOSAR specification 2.0.
The new software suite has been delivered to major OEM's and Tier1's
for several evaluation projects to be used for the development of
AUTOSAR-conforming applications. EB is also the leading AUTOSAR
technical partner for JasPar (Japan Automotive Software Platform
Architecture) in Japan.
In April, EB announced that after the successful launch of
Blue&Me(TM) at the Autosalon Geneva last year, Fiat is now
introducing to the market the next generation of the infotainment
system with Blue&Me(TM) Nav. Fiat has developed the system together
with Microsoft and EB. The Blue&Me(TM) system now integrates a
hands-free navigation solution with predictive graphic interface and
voice control on the basis of Windows Mobile for Automotive, also
including a Bluetooth hands-free car kit for mobile phones with voice
control, MP3 and WMA supported music features, and SMS-reader.
In April, it was also announced that in addition to CAN (Controller
Area Network) and LIN (Local Interconnect Network), FlexRay(TM), the
new high performance network communications protocol standard for
automotive electronics, is available as an integrated component of
the EB tresos® Automotive Standard Core. The tresos® ECU supports all
important bus systems in the car, in addition to CAN and LIN.
The newest version of the EB street director(TM) portable navigation
solution, which responds to spoken commands, was published in May.
The user is able to input the required destination as a simple voice
command. With this system, EB introduced the first PND Navigation
with voice destination entry. The solution was presented together
with the hardware manufacturer Medion at this year's CeBIT.
The purchase of DECOMSYS in June supports EB's technology and product
offering for automotive customers. DECOMSYS is a solutions provider
for FlexRay(TM), the new high performance network communications
protocol standard for automotive electronics, and AUTOSAR (Automotive
Open System Architecture) next generation standard software.
Headquartered in Vienna, Austria, DECOMSYS employs 48 people, mainly
software professionals. The Transaction comprises the subsidiaries of
DECOMSYS in Austria, Germany and the USA. The core products of
DECOMSYS are FlexRay(TM) design tools, FlexRay(TM) software stacks,
and FlexRay(TM) network analysis tools. EB has already earlier used
the DECOMSYS' FlexRay(TM) software stack in its AUTOSAR products.
WIRELESS BUSINESS SEGMENT FROM JANUARY TO JUNE 2007
The Wireless Business Segment comprises four business units; the
Mobile Terminal Solutions Business Unit, which is responsible for
mobile terminal R&D services and design business, the Radio Network
Solutions Business Unit, which is responsible for radio network
infrastructure-related R&D services and standard-based products sold
to telecommunications infrastructure suppliers, the Wireless
Communications Tools Business Unit which is responsible for advanced
wireless emulation and engineering tools, and the Wireless Sensor
Solutions, which is responsible for RFID reader systems and related
industrial wireless network solutions.
The net sales of the Wireless Business Segment from January to June
2007 amounted to EUR 42.2 million (EUR 41.9 million) and the
operating loss was EUR -13.5 million (EUR 0.8 million). Compared to
the corresponding period in 2006, the decline in profitability was
due to significantly higher investments in product development of
mobile WiMAX products, weaker than expected demand and intense price
competition of mobile terminal solutions R&D services and R&D
investments in RFID reader products portfolio.
Mobile Terminals Solutions Business Unit from January to June 2007
The Mobile Terminal Solutions Business Unit delivers R&D services and
platforms for mobile devices, professional mobile radios, mobile
internet multimedia devices (MIMD), security and defence, industrial
and other applications.
The business environment for the mobile terminals business continued
to be under intense competition during the reporting period. The
Mobile Terminal Solutions Business Unit continued its close
co-operation with technology vendors and OEM customers focusing on 3G
reference designs and smart phone development services. The Mobile
Terminal Solutions Business Unit made efforts to improve its
profitability through widening the customer portfolio, redirecting
the project portfolio, improving internal efficiency and growing new
applications areas such as professional mobile radios. By the end of
the review period the resource utilization rate was recovered to the
normal level.
In April, EB joined the Mobile Internet Device Innovation Alliance
(MIDIA) founded by Intel in order to develop technology for mobile
internet devices. EB demonstrated the EB MIMD reference device at the
Computex Taipei International Information Technology Show in June. EB
will not offer its own brand of MIMD device nor act as an ODM
supplier, but plans to offer the EB MIMD Reference Product and
related product design services under license to OEM's, ODM's and
other customers to commercialize MIMD products under their own brands
or customer brands.
Radio Network Solutions Business Unit from January to June 2007
The Radio Network Solutions Business Unit provides radio network
infrastructure-related R&D services and develops standard-based
products sold to telecommunications infrastructure suppliers. An
important investment area for EB under this business unit is the
development of mobile WiMAX (IEEE 802.16e) base station modules.
The R&D services business comprises design services (software,
digital and analogue HW, mechanics, ASIC, FPGA, RF and PCB design)
for wireless base stations.
The business environment for R&D services has been somewhat volatile
and under intense price competition during the reporting period. The
revenue from R&D services has grown slightly in comparison with the
corresponding period in 2006 despite the fact that a significant part
of the R&D resources has been allocated to the development of EB's
own mobile WiMAX base station module products, which are expected to
start generating revenue from the end of 2007 or early 2008. The
Radio Network Solutions Business Unit has been able to grow the
customer base for mobile WiMAX module products during the reporting
period.
Product development investments associated with mobile WiMAX base
stations modules increased over the period under review and were on a
slightly higher level than planned.
Wireless Communications Tools Business Unit from January to June 2007
Since June 2006, EB has been reviewing and developing the strategy of
the System Test Business Unit. The company decided to focus the
Business Unit's operations on advanced wireless emulation and
engineering tools and started to invest in the development of new
products in order to expand the application domain and the product
portfolio of the Propsim(TM) radio channel emulator product family.
To better describe the refined focus of the System Test Business
Unit, it was renamed as the Wireless Communications Tools Business
Unit in June. Simultaneously, EB decided to include the Wireless
Communications Tools Business Unit in the Wireless Business Segment
based on the confirmation of the business unit's undisputed global
product leadership and critical role in generating leading-edge radio
propagation know-how for the integrated use of the whole company.
The products of the Wireless Communications Tools Business Unit
include mainly radio channel emulators and measurement instruments
(the Propsim(TM) and Propsound products) sold to chipset
manufacturers, mobile terminal and infrastructure equipment
suppliers, wireless network operators and military communications
companies.
The high demand of MIMO-capable radio channel emulation solutions for
both cellular and non-cellular applications continued. Deliveries for
the pre-deployment tests of new radio networks continued on a strong
level in the wireless operator segment.
The total sales of the Wireless Communications Tools Business Unit
grew strongly from the corresponding period of 2006. During the first
half, the three sales regions (EMEA, APAC and the Americas) were
generating sales in a well-balanced manner. The sales organization in
China was reinforced by adding own resources to complement the
channel sales. The sales footprint in the US was strengthened with
new distributors.
R&D investments expanding the application domain and the product
portfolio of the Propsim(TM) radio channel emulator product family
continued. In February, a scalable single-box handset testing
solution based on the Propsim(TM) FE product was released, and the
first delivery took place. In March, a Propsim(TM) C2 -based turnkey
solution for 2 x 2 MIMO fading testing for multiple systems, like
WCDMA, HSPA, mobile WiMAX, 3G LTE (Long Term Evolution) and 4G, was
introduced, and the sales of the solution started. In June, the first
deliveries of the new tester products for the R&D of
open-interface-based base stations (OBSAITM) were performed.
Wireless Sensor Solutions Business Unit from January to June 2007
The Wireless Sensor Solutions Business Unit provides RFID reader
systems and related industrial wireless network solutions. A line of
RFID reader products introduced in November 2006 together with EB's
industrial WLAN products represents the initial product portfolio of
the Wireless Sensor Solutions Business Unit. The EB RFID solutions
are targeted especially at solving challenges in the supply chain and
manufacturing of logistics service providers, automotive,
telecommunications, electronics, and other high technology
industries.
The acquisition of 7iD, in June, strengthens EB's offering in the
Wireless Sensor Solutions Business Unit. 7iD is a company
specialising in RFID technology. It provides services and products
for system integrators and RFID companies and delivers technology and
turn-key solutions for supply chain and asset management in
pharmaceutical, paper, aviation and automotive industries. 7iD is
headquartered in Graz (Austria) and employs 21 people in total. The
core products of 7iD are reader and acquisition service software
products, RFID controllers and related application-specific edgeware
software products, which support and expand EB's Identification
Network Architecture. 7iD is an active member of EPCglobal Inc., the
international organization developing standards for Electronic
Product Code (EPC) to support the use of Radio Frequency
Identification (RFID).
As the RFID applications become more challenging with large number of
readers in a dense deployment environment, it is no longer practical
to manage the readers on an individual basis. EB is now able to
deliver scalable RFID networks with full EPCglobal compliance.
Consequently, EB provides its customers with Identification Network
Architecture with distributed intelligence in both RFID readers and
RFID Controllers and the Facility Sounding(TM) technology. These
customers gain the abilities to reduce the traffic in the backbone
network and to tune the RFID networks against internal or external
interference.
The business environment of the Wireless Sensor Solutions Business
Unit has been developing as expected with RFID market still having
it's major focus on trials and pilot projects.
RESEARCH AND DEVELOPMENT FROM JANUARY TO JUNE 2007
The R&D investments were continued especially in the following areas:
- The development of software platform based products in the
Automotive Software Business Unit.
- The development of mobile WiMAX radio base station module products
in the Radio Network
Solutions Business Unit.
- Expanding the application domain and the product portfolio in the
Wireless Communications Tools Business Unit.
- Development of products portfolio in the Wireless Sensor Solutions
Business Unit.
- The technical core competence areas as defined in the strategy.
The total R&D investments during the period under review were EUR
15.7 million (EUR 6.5 million) and EUR 2.0 million of them have been
capitalized.
BUSINESS ENVIRONMENT
It is expected that the share of electronics and software in cars
will continue to grow. For reference, the market for automotive
software solutions grew more than 15 per cent in 2006 (Mercer study
2005, The Impact of AUTOSAR on the Auto Software and Tools Market).
The delivery volume of mobile devices in 2007 is expected to increase
by some 12 per cent (Strategy Analytics). In the wireless network
equipment market, operators are expected to continue to invest in
network capacity and in new cellular network technologies (WCDMA,
HSPA). The mobile WiMAX infrastructure equipment market is expected
to start in the end of 2007 or early 2008, the leading operators and
OEMs having their mobile WiMAX implementations planned for late 2007
and for 2008. The wireless communications tools market is predicted
to expand moderately in 2007, as the development of new cellular
technologies, enhancements to existing technologies (HSDPA, HSUPA,
3GPP LTE, MIMO) and new non-cellular technologies (mobile WiMAX,
WiBRO) are generating demand for test system replacements and for new
test systems. The Global RFID market segmented by RFID reader
components is estimated to grow with a CAGR of over 20 per cent for
the period 2006 to 2009 (VDC).
OUTLOOK FOR THE SECOND HALF OF 2007
(Continuing Operations without Production Solutions business)
EB expects the sequential revenue growth from the first half of 2007
to the second half of 2007 to be stronger than it was from the second
half of 2006 (MEUR 61.0) to the first half of 2007 (MEUR 64.5).
The company will continue to invest in:
- Software platform based products in the Automotive Software
Business Unit.
- Development of mobile WiMAX radio base station module products in
the Radio Network Solutions Business Unit.
- Expanding the application domain and the product portfolio in the
Wireless Communications Tools Business Unit.
- Widening the product portfolio of the Wireless Sensor Solutions
Business Unit.
- The technical core competence areas defined in the strategy.
- Developing the Sales and Marketing organization.
- Building up efficient and unified structures and platforms to
enable global business operations according to the strategy.
During the second half, EB will commence actions to render the
company cost structure to correspond with the reduced sales turnover
level, after the earlier implemented sale of businesses and reduction
of business segments into two.
EB expects the operating loss in the second half of 2007 to reduce
significantly compared to the operating loss of the first half of
2007 (MEUR -13.8).
RISKS AND UNCERTAINTIES
EB follows a risk management policy with the objective of covering
risks related to business operations, property, agreements,
competence, currencies, financing and strategy. The company has
identified risks and uncertainties related to such issues as
strategy, business operations, personnel, product development,
product liability, property and financing. Among others, the
following risks are related to the company's business operations.
In R&D services businesses the risks are mainly related to
uncertainties of customers' product program decisions, their make or
buy decisions, ramping up of project resources, timing of the most
important technology components, competitive situation in the market,
and to typical industry warranty and liability risks involved in
selling R&D services. In the near term, additional risks emanate from
ongoing restructuring of the telecommunications infrastructure
industry.
In the technology product businesses the risks are related to
potential market delays, short visibility to customer orders, timely
closing of customer contracts, delays in R&D projects, activations
based on customer contracts, obsolescence of inventories and
technology risks in product development causing higher than planned
R&D cost. Revenues expected to come from new products for existing
and new customers include normal timing risks.
More information on the risks and uncertainties affecting EB can be
found on the company website at www.elektrobit.com/aboutelektrobit.
BALANCE SHEET AND FINANCING
The figures presented in the balance sheet of June 30, 2007, have
been compared with the balance sheet of December 31, 2006
(EUR 1,000).
06/2007 12/2006
Non-current assets 87.722 66.315
Inventories 8.825 13.878
Accounts and other receivables 53.766 57.518
Financing securities, cash and bank deposits 98.750 125.091
Current assets total 161.341 196.487
Total assets 249.063 262.803
Share capital 12.941 12.941
Other equity 159.370 173.513
Minority interest 2.107
Total shareholders' equity 172.310 188.562
Non-current liabilities 34.346 23.728
Current liabilities 42.406 50.513
Total shareholders' equity and liabilities 249.063 262.803
Net cash flow from operations during the period under review:
+ net profit +/- adjustment of accrual basis items EUR -11.3 million
- increase in net working capital EUR -2.2 million
- interest, taxes and dividends EUR 1.8 million
= cash generated from operations EUR -11.7 million
- net cash used in investment activities EUR -0.5 million
- net cash used in financing EUR -14.1 million
= net change in cash and cash equivalents EUR -26.3 million
The amount of accounts and other receivables, booked in current
receivables, was EUR 53.8 million (EUR 57.5 million on December 31,
2006), while accounts and other payables, booked in interest-free
current liabilities, were at EUR 31.7 million (EUR 35.3 million on
December 31, 2006).
The amount of non-depreciated consolidation goodwill at the end of
the period under review was EUR 21.1 million (EUR 8.2 million on
December 31, 2006) and depreciation on business acquisitions during
the reporting period amounted to a total of EUR 0.7 million (EUR 0.9
million during the comparable period in 2006).
The amount of net investments in the period under review was EUR 27.2
million, consisting of replacement investments and items created by
business acquisitions and the sale of the Production Solutions
business. The total amount of depreciation during the period under
review was EUR 4.8 million, including EUR 0.7 million of depreciation
owing to business acquisitions.
EB's other long-term investments include an investment portfolio with
a book value of approximately EUR 10.9 million, which mainly consists
of long-term bonds. The portfolio is valued at market value on June
30, 2007.
The amount of interest-bearing debt at the end of the reporting
period was EUR 38.8 million. The distribution of net financing
expenses on the income statement was as follows:
interest, dividend and other financial income EUR 1.9 million
interest expenses EUR -0.8 million
foreign exchange gains and losses EUR 0.0 million
EB's equity ratio at the end of the period was 69.6 per cent
(compared with 72.2 per cent at the end of 2006).
The figures from the period under review do not include any of the
statutory reserves stipulated in Chapter 5, section 14 of the
Accounting Act.
EB follows a currency strategy, the objective of which is to ensure
the margins of business operations in changing market circumstances
by minimising the influence of exchange rates. In accordance with the
principles of the currency strategy, the upcoming 12-month net cash
flow of the currency in question is hedged. The net cash flow is
determined on the basis of sales receivables, payables, the order
book and the budgeted net currency cash flow. The hedged foreign
currency exposure at the end of the review period was equivalent to
EUR 14.0 million.
PERSONNEL
EB employed an average of 1633 people between January and June 2007.
At the end of June, EB had 1729 employees (1621, Continuing
Operations, at the end of 2006). Product development engineers
constitute the most significant part of EB's personnel.
OPTION RIGHTS
I. The Annual General Meeting of March 17, 2005 decided to authorise
the Board of Directors to issue option rights. By virtue of the
authorisation the Board of Directors granted 4,500,000 option rights
to the company's management and EB's fully owned subsidiary serving
as a reserve company in the stock option scheme. Subscriptions made
by virtue of the 2005 option rights may increase the share capital of
Elektrobit Corporation by a maximum of EUR 450,000 and the number of
shares by a maximum of 4,500,000.
II. The Annual General Meeting held on March 15, 2006 decided that
option rights with a commitment to shareholding be granted to
Elektrobit Corporation's new directors. The number of option rights
granted totals 1,750,000, of which 750,000 were granted to the
Chairman of the Board and 1,000,000 were granted to the CEO.
Subscriptions made by virtue of the said option rights might increase
the share capital of Elektrobit Corporation by a maximum of
EUR 175,000 and the number of shares by a maximum of 1,750,000 new
shares.
THE AUTHORISATIONS OF THE BOARD OF DIRECTORS AT THE END OF THE
REPORTING PERIOD
The Annual Shareholders' Meeting held on March 14, 2007 resolved to
authorize the Board of Directors to repurchase shares of the company
as follows: The amount of the repurchased own shares shall not be
more than 12,500,000 shares, which represents approximately 9.66 per
cent of all the shares of the company. Only the unrestricted equity
of the company can be used to repurchase own shares on the basis of
the authorization. Own shares can be repurchased at a price
determined in public trading on the date of repurchase or otherwise
on the market. The Board of Directors shall resolve on how the
repurchase of shares is carried out. The repurchase can be carried
out by using, among others, derivatives. Shares may be repurchased
also otherwise than in proportion to the shares owned by the
shareholders of the company (directed repurchase of shares). The
authorization is effective until 30 June 2008.
The Annual Shareholders' Meeting held on March 14, 2007 authorized
the Board of Directors to resolve on the issuance of shares and stock
options and other special rights entitling to shares subject to
chapter 10, section 1 of the Companies Act as follows: The aggregate
number of shares issued on the basis of the authorization may not
exceed 25,000,000 shares, which represents approximately 19.3 per
cent of all the shares of the company. The Board of Directors is
authorized to resolve on all the terms and conditions concerning the
issue of shares and stock options and other special rights entitling
to shares. The authorization concerns both the issuance of new shares
and transfer of the company's own shares. Issuance of shares and
other special rights entitling to shares can be carried out as a
directed issue.
NOTIFICATIONS IN ACCORDANCE WITH CHAPTER 2, SECTION 9 OF THE
SECURITIES MARKET ACT
There were no changes in ownership during the period under review
that would have caused an obligation of disclosure in accordance with
Chapter 2, section 9 of the Securities Market Act.
BOARD OF DIRECTORS AND AUDITOR
The Annual Shareholders' Meeting held on March 14, 2007 fixed the
number of the Board members to six (6). Mr. J.T. Bergqvist, Mr. Jukka
Harju, Mr. Juha Hulkko, Mr. Matti Lainema, Mr. Juha Sipilä and Mr.
Tapio Tammi were elected as Board members. The term of office of the
Board members will end at the next Annual Shareholders' Meeting. At
its assembly meeting held on March 14, 2007 the Board of Directors
elected J.T. Bergqvist as the Chairman of the Board.
The Annual Shareholders' Meeting elected Ernst & Young Oy, an
auditing entity authorized by the Central Chamber of Commerce, as the
auditor of the company.
DIVIDEND FROM 2006
The Annual Shareholders' Meeting of March 14, 2007 approved the Board
of Directors' proposal to pay dividend of EUR 0.11 per share, a total
of EUR 14,235,395.90, for the financial period from January 1 to
December 31, 2006. The payment date of the dividend was March 26,
2007.
AMENDMENT OF THE ARTICLES OF ASSOCIATION AND THE COMPANY NAME CHANGE
The Annual Shareholders' Meeting held of March 14, 2007 approved the
Board of Directors' proposal to amend the Articles of Association
mainly due to the new Companies Act, which entered into force on
September 1, 2006. Simultaneously the company name was changed into
Elektrobit Oyj, in English Elektrobit Corporation. By virtue of the
registration of the changes, the amendments of the Articles of
Association and the company's new name became effective on March 23,
2007.
Oulunsalo, August 2, 2007
Elektrobit Corporation
The Board of Directors
Further Information:
Pertti Korhonen
CEO
EB
Tel. +358 40 344 5148
Seppo Laine
CFO
EB
Tel. +358 40 344 2250
Distribution:
OMX Helsinki
Principal media
INVITATION TO PRESS CONFERENCE
Elektrobit (EB) will hold a press conference for media, analysts and
institutional investors concerning the Interim Report Q2 2007 on
August 2, 2007 as follows:
In Helsinki at 1.00 - 2.00 pm. (EEST)
Restaurant Savoy
Eteläesplanadi 14
Cabinet Banquet, 7th floor
The conference will be audio webcast and published live on the
Internet on
http://194.100.179.98:80/wip/directlink.do?newbrowser=1&pid=1633089.
There will be a possibility to present questions in place as well as
by calling to the following conference call numbers:
Participants - Finland: +358 (0)9 2313 9202
Participants - UK: +44 (0)20 7162 0125
Participants - US: +1 334 323 6203
An on-demand version of the audio webcast will be available after the
conference on EB's website www.elektrobit.com/investors. The
presentation material will be available after the publication of the
Interim Report on the same address.
CONSENSUS ESTIMATE
EB consensus estimates made by the analysts who observe the company
is updated approximately two weeks before the release of the next
financial report. The recent estimate is available on the company
website www.elektrobit.com/investors
FINANCIAL REPORTING IN 2007
In 2007, the results of the third quarter will be published on
November 7.
Oulunsalo, July 26, 2007
Elektrobit Corporation
Corporate Communications
ELEKTROBIT CORPORATION'S INTERIM REPORT JANUARY - JUNE 2007
(unaudited)
The Interim Report has been prepared in accordance with IAS 34
Interim Financial Reporting.
CONSOLIDATED INCOME STATEMENT 1-6/2007 1-6/2006 1-12/2006
(MEUR)
6 months 6 months 12 months
Continuing operations
NET SALES 64.5 59.5 120.5
Other operating income 2.8 0.3 1.8
Change in work in progress and
finished goods 2.5 0.1 0.6
Work performed by the
undertaking for its own purpose
and capitalized 0.0 0.1 0.3
Raw materials -4.2 -3.4 -7.1
Personnel expenses -47.3 -36.4 -78.4
Depreciation -4.8 -4.0 -8.2
Other operating expenses -27.2 -14.5 -35.5
OPERATING PROFIT (LOSS) -13.8 1.8 -6.0
Financial income and expenses 1.1 -0.5 -0.0
RESULT BEFORE TAXES -12.7 1.3 -6.1
Income taxes -0.0 -0.6 -0.1
RESULT FOR THE PERIOD FROM
CONTINUING OPERATIONS -12.7 0.7 -6.1
Result after taxes for the
period from discontinued
operations 12.8 3.7 80.3
RESULT FOR THE PERIOD 0.0 4.4 74.2
Attributable to
Equity holders of the parent 0.0 4.3 73.9
Minority interest -0.0 0.1 0.3
Earnings per share EUR
continuing operations
Basic earnings per share -0.10 0.00 -0.05
Diluted earnings per share -0.10 0.00 -0.05
Earnings per share EUR
discontinued operations
Basic earnings per share 0.10 0.03 0.62
Diluted earnings per share 0.10 0.03 0.62
Earnings per share EUR
continuing and discontinued
operations
Basic earnings per share 0.00 0.03 0.57
Diluted earnings per share 0.00 0.03 0.57
Average number of shares, 1000
pcs 129 413 129 413 129 413
CONSOLIDATED BALANCE SHEET June 30, 2007 June 30, 2006 Dec. 31,
(MEUR) 2006
ASSETS
Non-current assets
Property, plant and equipment 35.0 32.2 32.5
Goodwill 21.1 9.2 8.2
Intangible assets 16.8 12.0 10.6
Financial assets at fair
value through profit or loss 10.9 10.1 10.7
Other financial assets 0.4 0.1 0.1
Receivables 0.1 1.7 1.6
Deferred tax assets 3.5 3.2 2.7
Non-current assets total 87.7 68.5 66.3
Current assets
Inventories 8.8 14.5 13.9
Trade and other receivables 53.8 58.6 57.5
Cash and short term deposits 98.7 46.8 125.1
Current assets total 161.3 119.8 196.5
TOTAL ASSETS 249.1 188.3 262.8
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent
Share capital 12.9 12.9 12.9
Share premium 64.6 64.6 64.6
Translation difference -0.1 -0.2 -0.2
Retained earnings 94.9 38.0 109.2
Minority interest 0.0 1.9 2.1
Total equity 172.3 117.2 188.6
Non-current liabilities
Deferred tax liabilities 5.6 7.8 6.2
Interest-bearing liabilities 28.0 17.3 17.2
Other liabilities 0.7 0.1 0.3
Non-current liabilities total 34.3 25.2 23.7
Current liablities
Trade and other payables 30.8 32.0 32.8
Pension obligations 0.9 0.7 0.8
Current tax liabilities 0.0 0.0 1.7
Interest-bearing loans and
borrowings (non-current) 10.7 13.2 15.2
Current liabilities total 42.4 46.0 50.5
Total liablities 76.8 71.1 74.2
TOTAL EQUITY AND LIABILITIES 249.1 188.3 262.8
CONSOLIDATED CASH FLOW STATEMENT (MEUR) 1-6/2007 1-6/2006 1-12/2006
6 months 6 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
Result for the period 0.0 4.3 73.9
Adjustment of accrual basis items -11.4 7.3 -63.7
Change in net working capital -2.2 -9.1 -7.4
Interest paid on operating activities -1.2 -1.1 -1.9
Interest received from operating
activities 2.5 0.6 1.8
Other financial income and expenses, net
received 0.0 0.0 0.0
Income taxes paid 0.5 -3.9 -4.1
NET CASH FROM OPERATING ACTIVITIES -11.7 -1.9 -1.4
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of business unit, net of cash
acquired -2.3 -0.3
Acquisition of minority interest -10.2
Disposal of business unit, net of cash
acquired 15.0 81.1
Purchase of property, plant and equipment -2.0 -1.0 -2.8
Purchase of intangible assets -1.8 -0.5 -1.8
Purchase of other investments -2.7 -2.6 -6.1
Sale of property, plant and equipment 0.3 0.1 2.9
Sale of intangible assets 0.7 0.0
Proceeds from sale of investments 2.5 2.8 5.6
NET CASH FROM INVESTING ACTIVITIES -0.5 -1.2 78.5
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing 4,0 1,4 4.2
Repayment of borrowing -1,5 -1,5 -4.4
Payment of finance liabilities -2,4 -1,6 -3.4
Dividends paid -14,2 -9,1 -9.1
NET CASH FROM FINANCING ACTIVITIES -14,1 -10,8 -12.6
NET CHANGE IN CASH AND CASH EQUIVALENTS -26.3 -13.8 64.5
Cash and cash equivalents at beginning of
period 125.1 60.6 60.6
Cash and cash equivalents at end of
period 98.7 46.8 125.1
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY (MEUR)
A = Share capital
B = Share premium
C = Retained earnings
D = Net profit for the period
E = Minority interest
F = Total equity A B C D E F
Equity on January 1, 2006 12.9 64.6 42.7 1.8 122.0
Result for the period 4.3 4.3
Dividend distribution -9.1 -9.1
Share-related compensation 0.3 0.3
Translation difference -0.5 0.1 -0.4
Others 0.0 0.0
Equity on June 30, 2006 12.9 64.6 33.5 4.3 1.9 117.2
Equity on January 1, 2007 12.9 64.6 108.9 2.1 188.6
Result for the period 0.0 0.0
Dividend distribution -14.2 -14.2
Share-related compensation 0.5 0.5
Translation difference 0.1 -2.1 -2.1
Others -0.6 -0.6
Equity on June 30, 2007 12.9 64.6 94.8 0.0 0.0 172.3
NOTES TO THE INTERIM REPORT
Accounting Principles for the Interim Report:
The same accounting policies and methods of computation are followed
in the interim financial statements as compared with the most recent
annual financial statements.
Explanatory comments about the seasonality or cyclicality of interim
operations:
The company operates in business areas which are subject to seasonal
fluctuations.
The nature and amount of items affecting assets, liabilities, equity,
net income, or cash flows that are unusual because of their nature,
size or incidence:
During the first quarter, the purchase of minority shares of
Elektrobit Automotive GmbH created a goodwill of EUR 8.1 million.
During the second quarter, the purchasing of DECOMSYS Beteiligungs
GmbH and 7iD Technologies GmbH created a goodwill of EUR 4.8 million
and a share of EUR 7.0 million of other intangible rights subject to
depreciation. During the second quarter, the Production Solutions
business was sold. The result of the Production Solutions business
and the return from the sale of the Production Solutions business are
presented in the income statement under Discontinued Operations.
Dividends paid:
According to the decision of the company's Annual Shareholders'
Meeting held on March 14, 2007, dividend of EUR 0.11 per share, a
total of EUR 14,235,395.90 was paid on March 26, 2007
SEGMENT INFORMATION (MEUR) 1-6/2007 1-6/2006 1-12/2006
Continuing operations 6 months 6 months 12 months
Automotive
Net sales to external customers 21.8 17.5 38.9
Net sales to other segments 0.0 0.0 0.0
Net sales total 21.8 17.5 38.9
Operating profit (loss) -0.8 0.8 2.1
Wireless
Net sales to external customers 42.2 41.9 81.4
Net sales to other segments 0.6 1.6 2.2
Net sales total 42.8 43.5 83.6
Operating profit (loss) -13.5 0.8 -8.3
Other businesses
Net sales to external customers 0.4 0.1 0.2
Net sales to other segments 0.0 3.0 9.4
Net sales total 0.4 3.1 9.6
Operating profit (loss) 0.4 0.2 0.1
Eliminations
Net sales to external customers 0.0 0.0 0.0
Net sales to other segments -0.6 -4.6 -11.7
Net sales total -0.6 -4.6 -11.7
Operating profit (loss) 0.0 0.0 0.0
Group total
Net sales to external customers 64.5 59.5 120.5
Operating profit (loss) -13.8 1.8 -6.0
Net sales of geographical segments (MEUR) 1-6/2007 1-6/2006 1-12/2006
6 months 6 months 12 months
Net sales
Europe 50.0 46.9 96.5
Americas 11.4 7.9 15.2
Asia 3.1 4.7 8.7
Net sales total 64.5 59.5 120.5
Material events subsequent to the end of the interim period that have
not been reflected in the financial statements for the interim
period:
There were no material events subsequent to the end of the interim
period.
The effect of changes in the composition of the group structure
during the interim period:
During the first quarter, Elektrobit Corporation acquired the
minority shares of Elektrobit Automotive GmbH. During the second
quarter, in June, Elektrobit Corporation purchased 100 per cent of
the shares in DECOMSYS Beteiligungs GmbH. Additionally, Elektrobit
Corporation purchased 7iD Technologies GmbH in June. Elektrobit
Corporation sold is Production Solutions business as of June 1, 2007.
The Transaction comprised the subsidiaries belonging to the
Production Solutions business.
Related party transactions:
1-6/2007 1-6/2006
Employee benefits for key management and stock
option expenses total 1.3 0.9
Loans and guarantees to related party
There have not been other transactions between the
related parties
INCOME STATEMENT BY 4-6/ 1-3/ 10-12/ 7-9/ 4-6/
QUARTER (MEUR) 2007 2007 2006 2006 2006
3 months 3 months 3 months 3 months 3 months
NET SALES 33.5 31.0 33.3 27.6 31.6
Other operating income 2.2 0.6 1.3 0.2 0.2
Change in work in
progress and finished
goods 0.6 1.9 0.1 0.3 -0.2
Work performed by the
undertaking for its own
purpose and capitalized 0.0 0.0 0.1 0.1 -0.0
Raw materials -2.2 -2.0 -2.1 -1.6 -1.5
Personnel expenses -23.9 -23.4 -23.6 -18.3 -18.8
Depreciation -2.5 -2.3 -2.1 -2.0 -2.0
Other operating
expenses -14.3 -12.9 -12.2 -8.8 -6.4
OPERATING PROFIT (LOSS) -6.6 -7.2 -5.3 -2.5 2.8
Financial income and 0.3
expenses 0.8 0.3 0.1 -0.6
RESULT BEFORE TAXES -6.3 -6.4 -4.9 -2.4 2.3
Income taxes -0.1 0.1 0.3 0.2 -1.0
RESULT FOR THE PERIOD
FROM CONTINUING
OPERATIONS -6.4 -6.3 -4.6 -2.2 1.3
Result after taxes for
the period from
discontinued operations 14.5 -1.8 73.7 2.9 3.0
RESULT FOR THE PERIOD 8.1 -8.1 69.0 0.8 4.3
Attributable to
Equity holders of the 68.9
parent 8.1 -8.1 0.7 4.3
Minority interest 0.0 -0.0 0.2 0.1 0.0
June 30, March 31, Dec. 31. Sept.
BALANCE SHEET BY 2007 2007 2006 30. June 30.
QUARTER (MEUR) 2006 2006
ASSETS
Non-current assets
Property, plant and 35.0
equipment 34.6 32.5 32.2 32.2
Goodwill 21.1 16.2 8.2 9.2 9.2
Intangible assets 16.8 10.6 10.6 11.3 12.0
Financial assets at
fair value
through profit or
loss 10.9 10.8 10.7 10.5 10.1
Other financial
assets 0.4 0.1 0.1 0.1 0.1
Receivables 0.1 0.2 1.6 1.7 1.7
Deferred tax assets 3.5 3.5 2.7 2.7 3.2
Non-current assets
total 87.7 76.0 66.3 67.8 68.5
Current assets
Inventories 8.8 16.3 13.9 14.8 14.5
Trade and other
receivables 53.8 52.7 57.5 57.7 58.6
Cash and short term
deposits 98.7 96.6 125.1 45.6 46.8
Current assets total 161.3 165.6 196.5 118.1 119.8
TOTAL ASSETS 249.1 241.6 262.8 185.9 188.3
EQUITY AND LIABILITIES
Equity attributable to
equity holders of the
parent
Share capital 12.9 12.9 12.9 12.9 12.9
Share premium 64.6 64.6 64.6 64.6 64.6
Translation -0.1
difference -0.2 -0.2 -0.1 -0.2
Retained earnings 94.9 87.0 109.2 38.8 38.0
Minority interest 0.0 0.0 2.1 1.9 1.9
Total equity 172.3 164.3 188.6 118.1 117.2
Non-current liabilities
Deferred tax 5.6
liabilities 6.3 6.2 6.9 7.8
Interest-bearing 28.0
liabilities 22.3 17.2 17.2 17.3
Other liabilities 0.7 0.3 0.3 0.1 0.1
Non-current liabilities 34.3
total 28.9 23.7 24.1 25.2
Current liablities
Trade and other 30.8
payables 34.1 34.5 30.3 32.0
Pension obligations 0.9 0.8 0.8 0.8 0.7
Interest-bearing
loans and
borrowings
(non-current) 10.7 13.6 15.2 12.6 13.2
Current liabilities
total 42.4 48.5 50.5 43.6 46.0
Total liablities 76.8 77.3 74.2 67.7 71.1
TOTAL EQUITY AND
LIABILITIES 249.1 241.6 262.8 185.9 188.3
FINANCIAL PERFORMANCE RELATED 1-6/2007 1-6/2006 1-12/2006
RATIOS
6 months 6 months 12 months
INCOME STATEMENT (MEUR)
Net sales 64.5 59.5 120.5
Operating profit (loss) -13.8 1.8 -6.0
Operating profit (loss), % -5.0
of net sales -21.4 3.0
Result before taxes -12.7 1.3 -6.1
Result before taxes, % of -5.0
net sales -19.7 2.1
Result for the period -12.7 0.7 -6.1
PROFITABILITY AND OTHER KEY
FIGURES
Interest-bearing net -92.7
liabilities, (MEUR) -60.0 -16.2
Net gearing, % -34.8 -13.8 -49.2
Equity ratio, % 69.6 63.0 72.2
Gross investments, (MEUR) 32.4 6.1 16.4
Average personnel during the 1424
period 1633 1314
Personnel at the period end 1729 1392 1621
AMOUNT OF SHARE ISSUE June 30, 2007 June 30, 2006 Dec. 31,
ADJUSTMENT (1,000 pcs) 2006
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted 129 413
with stock options 129 413 129 413
STOCK-RELATED FINANCIAL RATIOS 1-6/2007 1-6/2006 1-12/2006
(EUR)
6 months 3 months 12 months
Basic earnings per share -0.10 0.00 -0.05
Diluted earnings per share -0.10 0.00 -0.05
Equity *) per share 1.33 0.89 1.44
*) Equity attributable to
equity holders of the parent
MARKET VALUES OF SHARES (EUR) 1-6/2007 1-6/2006 1-12/2006
Highest 2.48 2.56 2.56
Lowest 1.51 1.89 1.82
Average 1.98 2.23 2.18
At the end of period 1.88 2.22 2.06
Market value of the stock, 266.6
(MEUR) 243.3 287.3
Trading value of shares, (MEUR) 42.1 48.6 72.4
Number of shares traded, (1,000 33 206
PCS) 21 277 21 767
Related to average number of
shares % 16.4 16.8 25.7
SECURITIES AND CONTINGENT June 30, 2007 June 30, 2006 Dec. 31,
LIABILITIES (MEUR) 2006
AGAINST OWN LIABILITIES
Floating charges 3.0 3.0 3.0
Mortgages 18.0 18.0 18.0
Pledges 7.9 7.2 7.1
Mortgages are pledged for
liabilities totalled 12.6 14.1 13.4
OTHER DIRECT AND CONTINGENT
LIABILITIES
Rental liabilities
Falling due in the next year 3.0 3.0 3.1
Falling due after one year 4.5 2.9 3.7
Repurchase commitments
NOMINAL VALUE OF CURRENCY June 30, 2007 June 30, 2006 Dec. 31,
DERIVATIVES (MEUR) 2006
Foreign exchange forward
contracts
Market value 0.1 0.2 -0.0
Nominal value 14.0 14.4 9.5
Purchased currency options
Market value 0.0
Nominal value 2.5
Sold currency options
Market value -0.0
Nominal value 5.0
