Elcoteq SE Interim Report April 23, 2007, at 9.00 am (EET)
ELCOTEQ SE'S INTERIM REPORT JANUARY-MARCH 2008 (UNAUDITED)
Elcoteq SE's net sales between January and March totaled 908.7 million euros
(952.5 in January-March 2007). Operating income was -9.5 million euros (-52.4
and excluding restructuring expenses -22.3 in January-March 2007). Operating
income has clearly improved compared to the first quarter of the previous year
even with lower net sales. The action plans to improve the company's
profitability and competitiveness are proceeding in accordance with
expectations.
* Net sales 908.7 million euros (952.5)
* Operating income -9.5 million euros (-52.4 and excluding restructuring
expenses -22.3)
* Income before taxes -15.4 million euros (-59.0)
* Earnings per share (EPS) -0.35 euros (-1.49)
* Cash flow after investing activities -1.1 million euros (-40.9)
* Rolling 12-month return on capital employed (ROCE) -10.7% (-2.9%)
* Gearing 0.8 (0.7)
This interim report has been prepared using IFRS recognition and measuring
principles. Tables have been prepared in compliance with the IAS 34 requirements
approved by the EU. The comparative figures given in the body text of this
report are figures for the corresponding period in the previous year, unless
stated otherwise.
Net Sales and Result
Elcoteq recorded net sales of 908.7 million euros (952.5) between January and
March. Operating income totaled -9.5 million euros (-52.4) which was a clear
improvement from previous year especially when taking into account the lower net
sales. Operating expenses were 15 million euros lower than in the first quarter
of 2007 mainly as a result of cost savings from the action plans. Actions to
correct production problems in Mexico proceeded as planned and are continuing,
but to a great extent the results of these improving actions were not yet
visible in the first quarter 2008.
The Group's net financial expenses were 6.0 million euros (6.4). Income before
taxes was -15.4 million euros (-59.0) and net income totaled -11.6 million euros
(-46.9). Earnings per share (EPS) were -0.35 euros (-1.49).
The Group's gross capital expenditures on fixed assets between January and March
were 27.7 million euros (11.2) or 3.0% of net sales. Depreciation amounted to
17.1 million euros (20.1).
Financing and Cash Flow
Cash flow after investing activities was -1.1 million euros (-40.9). Cash flow
received by the Group from sold accounts receivable was 136.5 million euros at
the end of March (226.5 million euros at the end of 2007). The solvency ratio
was 19.2% (18.1% at the end of 2007 and 22.5% at the end of March 2007) and
gearing was 0.8 (0.7).
At the end of March Elcoteq had unused and immediately available credit limits
totaling 276.4 million euros (296.1 million euros at the end of 2007). These
unused credit limits included a 230 million euros syndicated, committed credit
facility of which 210 million euros was unused.
Business Areas
Since the beginning of 2008, Elcoteq has had three business areas as its primary
segments: Personal Communications, Home Communications and Communications
Networks. Until the end of 2007 Personal Communications and Home Communications
formed one combined business area, Terminal Products.
In the first quarter 2008 the Personal Communications contributed 76% (69%), the
Home Communications 9% (12%) and the Communications Networks 15% (19%) of the
Group's net sales. Elcoteq's largest customers (in alphabetical order) were
Ericsson, Nokia Mobile Phones, Nokia Siemens Networks, Philips, Research in
Motion (RIM), Sony Ericsson and Thomson.
Net sales of the Personal Communications business area were higher than in the
first quarter last year, standing at 688.4 million euros (658.8). The segment's
operating income was 5.4 million euros (-25.8 and excluding restructuring
expenses -4.4), or 0.8% of its net sales. Operating income improved due to
operational cost savings and increased sales. However, profitability is not yet
at a satisfactory level due to production problems in Mexico which are expected
to be solved towards the end of the second quarter of 2008.
Net sales of the Home Communications business area were lower in the first
quarter than one year earlier, standing at 81.4 million euros (108.4). The
segment's operating income was -0.5 million euros (-11.0 and excluding
restructuring expenses -4.1). Profitability has improved due to improvements in
cost structure but was still negative due to the lower sales.
Net sales of the Communications Networks business area decreased significantly
compared to last year's first quarter to 139.0 million euros (185.3). The
segment's operating income was -4.2 million euros (-4.7 and excluding
restructuring expenses -3.3). Net sales were mainly decreased from previous year
due to the divestment of the subsidiary in Germany in mid-January 2008.
Operating income effect due to the sales decline could mostly be offset by the
operational cost savings.
Geographical Areas
Elcoteq has three geographical areas: Europe, Asia-Pacific and Americas.
Elcoteq's first-quarter net sales were derived from these areas as follows:
Europe 465.4 million euros (507.6), Asia-Pacific 214.4 million euros (231.2) and
Americas 228.9 million euros (213.6).
Personnel
At the end of March 2008, Elcoteq employed 23,996 people (23,452): 243 (666) in
Finland and 23,753 (22,786) elsewhere. The geographical distribution of the
workforce was as follows: Europe 10,838 (10,822), Asia-Pacific 7,127 (7,459) and
Americas 6,031 (5,171). The average number of Elcoteq employees on the company's
direct payroll between January and March was 17,894 (19,065).
Progress in the Action Plans to Improve Profitability and Competitiveness as
well as in the Expansion of the Service Portfolio
As announced earlier, Elcoteq is continuing with the action plans to improve its
profitability and competitiveness. The company expects to achieve annual savings
totaling about 90-100 million euros with full effect by the end of 2008.
Furthermore, efforts to boost overall operational performance by more efficient
use of manufacturing resources at all locations and by efficient materials
management continue. These actions are proceeding according to the plans.
As part of these actions, the company announced on February 26, 2008 that it
would divest its subsidiary in St. Petersburg, Russia. It is expecting a
one-time gain of approximately 3 million euros after closing of the deal and
further positive impact on profitability will result from the third quarter of
2008 onwards. The closing of the deal is expected to take place during the
second quarter of 2008.
Expanding the service offering to an integrated EMS company is proceeding and
expected to be implemented by the end of 2008 as earlier announced.
Shares and Shareholders
At the end of March 2008, there were altogether 127,795,919 shares comprising
22,025,919 Series A shares and 105,770,000 Series K founders' shares. The par
value of the Series A shares is EUR 0.4 per share and of the K founders' shares
EUR 0.04 per share. Hence the par value of A shares and K founders' shares
totals EUR 13,041,167.60. All the Series K founders' shares are held by the
company's three principal owners.
Elcoteq had 9,700 shareholders on March 31, 2008. There were a total of
7,883,786 foreign and nominee registered shares, representing 6.2% of the votes.
Decisions of the Annual General Meeting
Elcoteq SE's Annual General Meeting took place at its headquarters Luxembourg on
March 25, 2008 with remote access to Helsinki, Finland. The Meeting approved the
Board's proposal that no dividend be distributed for the financial year January
1 - December 31, 2007.
The Meeting elected eight members to the Board of Directors. All the current
members were re-elected and were joined by a new member, Mr. François Pauly,
General Manager of Sal. Oppenheim Jr. & Cie S.C.A. The following persons
continue as Board members: President Martti Ahtisaari; Mr. Heikki Horstia, Vice
President, Treasurer, Wärtsilä Corporation; Mr. Eero Kasanen, Rector of the
Helsinki School of Economics; Mr. Antti Piippo, principal owner and
founder-shareholder of Elcoteq SE; Mr. Henry Sjöman, founder-shareholder of
Elcoteq SE; Mr. Juha Toivola, Master of Arts; and Mr. Jorma Vanhanen,
founder-shareholder of Elcoteq SE. The term of office of each Board member
extends until the end of the following Annual General Meeting. Mr. Ahtisaari,
Mr. Horstia, Mr. Kasanen, Mr. Pauly and Mr. Toivola are independent Board
members, and represent more than half of the Board's members.
At its constitutive meeting after the Annual General Meeting, the Board of
Directors elected Mr. Antti Piippo as its Chairman and Mr. Juha Toivola as
Deputy Chairman. Mr. Piippo was elected Chairman of the Nomination Committee and
the Working Committee and Mr. Sjöman, Mr. Toivola and Mr. Vanhanen as members of
these committees. Mr. Toivola was elected Chairman of the Compensation Committee
and the Audit Committee and Mr. Ahtisaari, Mr. Horstia, Mr. Kasanen and Mr.
Pauly as members of these committees.
The Meeting decided to appoint the firm of authorized public accountants KPMG
Audit S.à.r.l. under the supervision of Mr. Philippe Meyer as the Company's
auditor for the financial year ending on December 31, 2008.
The Meeting approved the Board's proposals amending Articles 30 and 54 of the
Articles of Association covering changes to the maximum number of directors in
the Board of Directors to be not more than ten and the Annual General Meeting
day being held only after the second following business day should March 23 be a
legal or bank holiday in Luxembourg or Finland.
Short-Term Risks and Uncertainty Factors
The most important short-term challenge with respect to Elcoteq's business
operations concerns the successful implementation of the action plans to improve
the company's profitability. Also, the ability to continuously adjust the cost
structure to reflect changing market conditions is a key factor in maintaining
the targeted profitability levels. Furthermore, the company must be able to
expand and offer relevant service packages that correspond to customer demands
and needs.
Prospects
Elcoteq's key priorities during 2008 are to significantly improve the company's
profitability and lay ground for future growth by expanding the service offering
in accordance with customers' needs.
Elcoteq forecasts that its full-year net sales will be at the level of year
2007. The operating income (excluding the restructuring items) will improve
substantially in 2008 compared to 2007. Profitability is expected to increase
gradually to reach operating income level of two percent towards the end of the
year.
Second quarter net sales are expected to be higher than the first quarter of
2008 and the operating income to improve clearly and to be positive.
Elcoteq's forecasts are based on the company's opinion of market growth and on
the project-specific forecasts of its customers, based on which Elcoteq makes
its forecasts of the realization of agreed and planned new projects.
Luxembourg
April 22, 2008
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 11, mobile +41 79 618 0302
Tuula Hatakka, SVP, Treasury and IR, tel. +358 10 413 1808, mobile +358 50 340
5478
Press Conference and Webcast
Elcoteq will hold a combined press conference, conference call and webcast in
English at 2.30 pm (EET) on Wednesday April 23, in the Bulsa-Freda room of
Scandic Hotel Simonkenttä (address: Simonkatu 9, Helsinki, Finland).
To participate by phone, please call in 5 - 10 minutes before the start of the
conference on +44 20 7162 0125 (Europe) or +1 334 323 6203 (the USA), code
Elcoteq.
The press conference can also be followed as a live webcast or later as a
recording via Elcoteq's website www.elcoteq.com.
Presentation material used at the press conference (pdf file) will be available
on the company's website www.elcoteq.com from approximately 11.00 am (EET) on
April 23, 2008.
Elcoteq will publish its second quarter interim report at 9.00 am (EET) on
Wednesday, July 23, 2008.
Enclosures:
1 Income statement
2 Balance sheet
3 Cash flow statement
4 Calculation of changes in shareholders' equity
5 Formulas for the calculation of key figures
6 Key figures
7 Business areas
8 Assets and liabilities classified as held for sale
9 Assets pledged and contingent liabilities
10 Quarterly figures
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| APPENDIX 1 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT, MEUR | 1-3/ | 1-3/ | Change, % | 1-12/ |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 908.7 | 952.5 | -4.6 | 4,042.9 |
--------------------------------------------------------------------------------
| Change in work in progress | | | | |
--------------------------------------------------------------------------------
| and finished goods | 2.9 | 1.3 | 127.8 | 18.5 |
--------------------------------------------------------------------------------
| Other operating income | 1.6 | 1.0 | 60.4 | 8.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating expenses | -905.6 | -957.0 | -5.4 | -4,035.9 |
--------------------------------------------------------------------------------
| Restructuring expenses | - | -30.1 | | -50.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation and writedowns | -17.1 | -20.1 | -15.0 | -79.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING INCOME | -9.5 | -52.4 | -81.9 | -96.3 |
--------------------------------------------------------------------------------
| % of net sales | -1.0 | -5.5 | | -2.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -6.0 | -6.4 | -6.2 | -26.1 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Share of profits and losses | - | -0.3 | | -0.4 |
| of associates | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME BEFORE TAXES | -15.4 | -59.0 | -73.9 | -122.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 4.2 | 12.4 | -66.4 | 16.3 |
--------------------------------------------------------------------------------
| NET INCOME FOR THE PERIOD | -11.3 | -46.6 | -75.8 | -106.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUTABLE TO: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | -11.6 | -46.9 | -75.4 | -108.4 |
| company * | | | | |
--------------------------------------------------------------------------------
| Minority interests | 0.3 | 0.3 | -7.8 | 1.9 |
--------------------------------------------------------------------------------
| | -11.3 | -46.6 | -75.8 | -106.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax is the amount corresponding to the result for the period based on |
| the estimated tax rate for the full year. |
--------------------------------------------------------------------------------
| * The Group´s reported net income for the period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 2 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET, MEUR | March 31, | Dec. 31, | Change, % |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 29.5 | 32.7 | -9.9 |
--------------------------------------------------------------------------------
| Tangible assets | 182.0 | 200.1 | -9.0 |
--------------------------------------------------------------------------------
| Investments | 2.1 | 2.2 | -5.0 |
--------------------------------------------------------------------------------
| Long-term receivables | 47.3 | 33.8 | 40.1 |
--------------------------------------------------------------------------------
| Non-current assets, total | 260.9 | 268.8 | -2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 321.7 | 355.8 | -9.6 |
--------------------------------------------------------------------------------
| Current receivables | 271.7 | 335.6 | -19.0 |
--------------------------------------------------------------------------------
| Cash and equivalents | 91.9 | 92.7 | -0.9 |
--------------------------------------------------------------------------------
| Current assets, total | 685.3 | 784.0 | -12.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as held for sale | 30.2 | 39.5 | -23.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 976.4 | 1,092.3 | -10.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital* | 13.0 | 13.0 | 0.0 |
--------------------------------------------------------------------------------
| Other shareholders' equity | 162.8 | 173.5 | -6.2 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 175.9 | 186.6 | -5.7 |
| of the parent company, total | | | |
--------------------------------------------------------------------------------
| Minority interests | 11.3 | 11.3 | -0.2 |
--------------------------------------------------------------------------------
| Total equity | 187.2 | 197.9 | -5.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Long-term loans | 159.4 | 159.3 | 0.1 |
--------------------------------------------------------------------------------
| Other long-term debt | 5.0 | 4.9 | 2.4 |
--------------------------------------------------------------------------------
| Long-term liabilities, total | 164.4 | 164.2 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current loans | 75.7 | 77.5 | -2.3 |
--------------------------------------------------------------------------------
| Other current liabilities | 544.7 | 625.6 | -12.9 |
--------------------------------------------------------------------------------
| Provisions | 3.7 | 6.5 | -43.7 |
--------------------------------------------------------------------------------
| Current liabilities, total | 624.1 | 709.6 | -12.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities classified as held for | 0.7 | 20.5 | -96.5 |
| sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES, | 976.4 | 1,092.3 | -10.6 |
| TOTAL | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * Shareholders' equity includes both A-shares listed in | |
| Helsinki Stock Exchange and K-founders' shares. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 3 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT, | 1-3/ | 1-3/ | Change, % | 1-12/ |
| MEUR | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in working | 1.3 | -4.3 | | 11.7 |
| capital | | | | |
--------------------------------------------------------------------------------
| Change in working capital * | 24.7 | -18.4 | | 43.2 |
--------------------------------------------------------------------------------
| Financial items and taxes | -7.5 | -8.6 | -12.7 | -19.7 |
--------------------------------------------------------------------------------
| Cash flow from operating | 18.4 | -31.2 | | 35.2 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of non-current assets | -20.0 | -10.4 | 92.5 | -67.1 |
--------------------------------------------------------------------------------
| Disposals of non-current assets | 0.5 | 0.7 | -26.7 | 20.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before financing | -1.1 | -40.9 | -97.4 | -11.1 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds from share issue | - | - | | 6.7 |
--------------------------------------------------------------------------------
| Redemption of parent company | - | - | | -0.1 |
| shares | | | | |
--------------------------------------------------------------------------------
| Change in current debt** | 2.4 | 34.4 | -93.1 | 30.4 |
--------------------------------------------------------------------------------
| Repayment of long-term debt | - | -0.2 | | -0.6 |
--------------------------------------------------------------------------------
| Dividends paid | - | - | | -8.9 |
--------------------------------------------------------------------------------
| Cash flow from financing | 2.4 | 34.3 | -93.1 | 27.6 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and equivalents | 1.3 | -6.6 | | 16.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents on January 1 | 92.7 | 82.3 | 12.6 | 82.3 |
--------------------------------------------------------------------------------
| Cash and equivalents classified as | -0.2 | - | | -3.2 |
| held for sale | | | | |
--------------------------------------------------------------------------------
| Effect of exchange rate changes on | -1.9 | -0.3 | 672.1 | -2.9 |
| cash held | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents at the end of | 91.9 | 75.4 | 21.7 | 92.7 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * The change in working capital includes the change in sold accounts |
| receivable. |
--------------------------------------------------------------------------------
| The impact of this change is to weaken cash flow by 90.0 million euros |
| during the reporting period 1-3/2008 and by 17.4 million euros during |
| 1-3/2007. |
--------------------------------------------------------------------------------
| ** The change in current debt during the reporting period 1-3/2008 includes |
| the change in issuance of |
| commercial papers with a nominal value of 17 million euros. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 4 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY, MEUR | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Attributable to equity | | Mino-r | Total |
| | holders of the parent | | ity | eq-u |
| | | | in | ity |
| | | | te-res | |
| | | | ts | |
--------------------------------------------------------------------------------
| | Shar | Addit | Other | Tran | Reta-i | Total | | |
| | e | ional | reser-v | -sla | ned | | | |
| | capi | paid- | es | t-io | ear-ni | | | |
| | -tal | in | | n | ngs | | | |
| | | capit | | diff | | | | |
| | | al | | -er- | | | | |
| | | | | ren- | | | | |
| | | | | ces | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 13.0 | 225.0 | 7.3 | 0.0 | -58.8 | 186.6 | 11.3 | 197.9 |
| Jan. 1, | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | 2.2 | | 2.2 | | 2.2 |
| hedge of | | | | | | | | |
| subsidiari | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | -2.4 | | | -2.4 | | -2.4 |
| hedge * | | | | | | | | |
--------------------------------------------------------------------------------
| Translatio | | | 0.0 | 1.0 | | 1.0 | -0.3 | 0.7 |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | | | | | -11.6 | -11.6 | 0.3 | -11.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 13.0 | 225.0 | 4.9 | 3.2 | -70.3 | 175.9 | 11.3 | 187.2 |
| March 31, | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 12.6 | 218.7 | 8.4 | -1.9 | 55.8 | 293.7 | 9.6 | 303.3 |
| Jan. 1, | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue of | 0.0 | 0.0 | | | | 0.0 | | 0.0 |
| share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 0.3 | | 0.3 | | 0.3 |
| hedge of | | | | | | | | |
| subsidiari | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Translatio | | | | 0.3 | | 0.3 | 0.2 | 0.5 |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | 0.1 | 0.1 | | 0.1 |
| d payments | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -6.3 | -6.3 | | -6.3 |
--------------------------------------------------------------------------------
| Net income | | | | | -46.9 | -46.9 | 0.3 | -46.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 12.6 | 218.7 | 8.4 | -1.3 | 2.7 | 241.1 | 10.1 | 251.2 |
| March. 31, | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| * The Group has applied hedge accounting to derivative instruments related |
| to purchases from June 30, 2007. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FORMULAS FOR THE CALCULATION OF KEY FIGURES |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (ROE) = | Net income x 100 / Total equity, average of |
| | opening and closing balances |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investments | (Income before taxes + interest and other |
| (ROI/ROCE) = | financial expenses) x 100 / Total assets - |
| | non-interest bearing liabilities, average of |
| | opening and closing balances |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), | Net income attributable to equity holders of the |
| A-shares = | parent, A-shares / Adjusted average number of |
| | A-shares outstanding during the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | Net income attributable to equity holders of the |
| diluted, A-shares (EPS) = | parent, A-shares / Adjusted average number of |
| | A-shares outstanding during the period |
| | + effect |
| | of dilution on the number of A-shares |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), | Net income attributable to equity holders of the |
| K-founders' shares = | parent, K-founders' shares / Adjusted average |
| | number of K-founders' shares outstanding during |
| | the period |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Current ratio = | Current assets + assets classifies as held for |
| | sale / Current liabilities + liabilities |
| | classified as held for sale |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency = | Total equity x 100 / Total assets - advance |
| | payments received |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gearing = | Interest-bearing liabilities - cash and |
| | equivalents / Total equity |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity attributable to equity holders of the |
| share, A-shares= | parent company, A-shares / Adjusted number of |
| | A-shares outstanding at the end of the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity attributable to equity holders of the |
| share, K-founders' | parent company, K-founders' shares / Adjusted |
| shares= | number of K-founders' shares outstanding at the |
| | end of the period |
--------------------------------------------------------------------------------
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| APPENDIX 6 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-3/ | 1-3/ | Change, % | 1-12/ |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel on average during the | 17,894 | 19,065 | -6.1 | 19,131 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross capital expenditures, | 27.7 | 11.2 | 147.3 | 67.2 |
| MEUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (ROE), % | -5.9 | -16.8 | | -42.5 |
--------------------------------------------------------------------------------
| Return on investment | -1.8 | -10.3 | | -19.6 |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| From 12 preceding months: | | | | |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | -32.5 | -12.7 | | -42.5 |
--------------------------------------------------------------------------------
| Return on investment | -10.7 | -2.9 | | -19.6 |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), | -0.35 | -1.49 | | -3.37 |
| A-shares, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share | -0.35 | -1.47 | | -3.37 |
| (EPS), A-shares, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), | -0.04 | -0.15 | | -0.34 |
| K-founders shares, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.1 | 1.2 | | 1.1 |
--------------------------------------------------------------------------------
| Solvency, % | 19.2 | 22.5 | | 18.1 |
--------------------------------------------------------------------------------
| Gearing | 0.8 | 0.7 | | 0.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per share, | 5.39 | 7.64 | | 5.72 |
| A-shares, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per share, | 0.54 | 0.76 | | 0.57 |
| K-founders shares, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities, | 235.4 | 244.6 | -3.8 | 237.2 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Interest-bearing net debt, MEUR | 143.6 | 169.2 | -15.1 | 144.5 |
--------------------------------------------------------------------------------
| Non-interest-bearing | 553.8 | 620.1 | -10.7 | 657.1 |
| liabilities, MEUR | | | | |
--------------------------------------------------------------------------------
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| APPENDIX 7 | | | |
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--------------------------------------------------------------------------------
| BUSINESS AREAS, MEUR | 1-3/ | 1-3/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Net Sales | | | |
--------------------------------------------------------------------------------
| Personal Communications | 688.4 | 658.8 | 2,777.8 |
--------------------------------------------------------------------------------
| Home Communications | 81.4 | 108.4 | 434.2 |
--------------------------------------------------------------------------------
| Communications Networks | 139.0 | 185.3 | 831.0 |
--------------------------------------------------------------------------------
| Total | 908.7 | 952.5 | 4,042.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´s operating income | | | |
--------------------------------------------------------------------------------
| Personal Communications | 5.4 | -25.8 | -30.2 |
--------------------------------------------------------------------------------
| Home Communications | -0.5 | -11.0 | -10.9 |
--------------------------------------------------------------------------------
| Communications Networks | -4.2 | -4.7 | -17.3 |
--------------------------------------------------------------------------------
| Group´s non-allocated | -10.1 | -10.8 | -38.0 |
| expenses/income | | | |
--------------------------------------------------------------------------------
| Total | -9.5 | -52.4 | -96.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elcoteq´s share of associated companies' results in the first quarter of |
| 2008 totaled 0.0 million euros (-0.3). |
--------------------------------------------------------------------------------
| Associated companies' results for the full year 2007 totaled -0.4 million |
| euros of which -0.1 million euros was allocated to Communications Networks |
| business area and -0.3 million euros to Group´s non-allocated |
| expenses/income. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 8 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets and liabilities classified as held for sale relate to real estates on |
| sale and to sale of ZAO Elcoteq in St. Petersburg, Russia to Flextronics |
| lnternational GmbH during the second quarter of year 2008. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as held for sale: | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | March 31, | |
| | 2008 | |
--------------------------------------------------------------------------------
| Non-current assets | 29.5 | |
--------------------------------------------------------------------------------
| Current assets | 0.7 | |
--------------------------------------------------------------------------------
| Total | 30.2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities classified as held for | | |
| sale: | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | March 31, | |
| | 2008 | |
--------------------------------------------------------------------------------
| Long-term liabilities | - | |
--------------------------------------------------------------------------------
| Current liabilities | 0.7 | |
--------------------------------------------------------------------------------
| Total | 0.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 9 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS PLEDGED AND CONTINGENT | March | March | Change, | Dec. |
| LIABILITIES, MEUR | 31, | 31, | % | 31, |
| | 2008 | 2007 | | 200 |
| | | | | 7 |
| | | | | |
--------------------------------------------------------------------------------
| ON BEHALF OF OTHERS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees | 1.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LEASING COMMITMENTS | | | | |
--------------------------------------------------------------------------------
| Operating leases, production | | | | |
| machinery | | | | |
--------------------------------------------------------------------------------
| and equipment (excl. VAT) | 21.2 | 42.1 | -49.6 | 26.2 |
--------------------------------------------------------------------------------
| Rental commitments, real-estate | 15.1 | 27.9 | -45.9 | 19.3 |
| (excl. VAT) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE CONTRACTS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| transaction risk | | | | |
--------------------------------------------------------------------------------
| hedge accounting not applied | | | | |
--------------------------------------------------------------------------------
| Nominal value | 183.8 | 280.3 | -34.4 | 223.3 |
--------------------------------------------------------------------------------
| Fair value | -4.5 | -0.9 | 400.0 | -7.1 |
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| transaction risk | | | | |
--------------------------------------------------------------------------------
| hedge accounting applied | | | | |
--------------------------------------------------------------------------------
| Nominal value | 193.0 | - | | 182.8 |
--------------------------------------------------------------------------------
| Fair value | -3.4 | - | | -1.0 |
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| translation risk | | | | |
--------------------------------------------------------------------------------
| Nominal value | 48.4 | 39.9 | 23.8 | 40.5 |
--------------------------------------------------------------------------------
| Fair value | 1.6 | 0.3 | 433.3 | 1.1 |
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| financial risk | | | | |
--------------------------------------------------------------------------------
| Nominal value | 150.6 | 150.8 | -0.1 | 126.5 |
--------------------------------------------------------------------------------
| Fair value | -0.1 | -0.0 | | 0.3 |
--------------------------------------------------------------------------------
| Interest rate and foreign | | | | |
| exchange | | | | |
| swap contracts | | | | |
--------------------------------------------------------------------------------
| Nominal value | 4.0 | 4.0 | 0.0 | 4.0 |
--------------------------------------------------------------------------------
| Fair value | 0.3 | 0.1 | 200.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The derivative contracts have been valued using the market prices and the |
| exchange reference rates of the European Central Bank on the balance sheet |
| date. The figures also include closed positions. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 10 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERLY FIGURES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT, MEUR | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 908.7 | 1,062.4 | 1,059.7 | 968.3 | 952.5 |
--------------------------------------------------------------------------------
| Change in work in | | | | | |
| progress | | | | | |
--------------------------------------------------------------------------------
| and finished goods | 2.9 | -5.7 | 23.8 | -0.9 | 1.3 |
--------------------------------------------------------------------------------
| Other operating income | 1.6 | 4.0 | 2.1 | 1.0 | 1.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating expenses | -905.6 | -1,050.9 | -1,063.5 | -964.5 | -957.0 |
--------------------------------------------------------------------------------
| Restructuring expenses | - | -15.3 | -1.8 | -3.1 | -30.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation and | -17.1 | -19.4 | -20.4 | -19.9 | -20.1 |
| writedowns | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING INCOME | -9.5 | -24.9 | -0.1 | -19.0 | -52.4 |
--------------------------------------------------------------------------------
| % of net sales | -1.0 | -2.3 | 0.0 | -2.0 | -5.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -6.0 | -6.3 | -7.3 | -6.1 | -6.4 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Share of profits and | - | -0.1 | 0.0 | -0.1 | -0.3 |
| losses of associates | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME BEFORE TAXES | -15.4 | -31.2 | -7.5 | -25.1 | -59.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 4.2 | -2.9 | 1.6 | 5.3 | 12.4 |
--------------------------------------------------------------------------------
| NET INCOME FOR THE | -11.3 | -34.2 | -5.9 | -19.8 | -46.6 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUTABLE TO: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | -11.6 | -34.5 | -6.3 | -20.6 | -46.9 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interests | 0.3 | 0.4 | 0.4 | 0.7 | 0.3 |
--------------------------------------------------------------------------------
| | -11.3 | -34.2 | -5.9 | -19.8 | -46.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET, MEUR | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 29.5 | 32.7 | 35.0 | 36.9 | 38.8 |
--------------------------------------------------------------------------------
| Tangible assets | 182.0 | 200.1 | 210.5 | 220.4 | 227.3 |
--------------------------------------------------------------------------------
| Investments | 2.1 | 2.2 | 2.4 | 2.5 | 2.6 |
--------------------------------------------------------------------------------
| Long-term receivables | 47.3 | 33.8 | 37.6 | 34.8 | 28.6 |
--------------------------------------------------------------------------------
| Non-current assets, | 260.9 | 268.8 | 285.5 | 294.7 | 297.4 |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | | |
--------------------------------------------------------------------------------
| Inventories | 321.7 | 355.8 | 395.7 | 365.0 | 346.4 |
--------------------------------------------------------------------------------
| Current receivables | 271.7 | 335.6 | 435.3 | 420.3 | 390.1 |
--------------------------------------------------------------------------------
| Cash and equivalents | 91.9 | 92.7 | 65.8 | 44.4 | 75.4 |
--------------------------------------------------------------------------------
| Current assets, total | 685.3 | 784.0 | 896.8 | 829.8 | 811.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as | 30.2 | 39.5 | 7.9 | 7.6 | 6.7 |
| held for sale | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 976.4 | 1,092.3 | 1,190.2 | 1,132.0 | 1,116.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | | | |
| AND LIABILITIES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to | | | | | |
| equity holders of the | | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Share capital | 13.0 | 13.0 | 13.0 | 13.0 | 12.6 |
--------------------------------------------------------------------------------
| Other shareholders' | 162.8 | 173.5 | 206.1 | 213.5 | 228.5 |
| equity | | | | | |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | |
| equity holders | | | | | |
--------------------------------------------------------------------------------
| of the parent company, | 175.9 | 186.6 | 219.2 | 226.6 | 241.1 |
| total | | | | | |
--------------------------------------------------------------------------------
| Minority interests | 11.3 | 11.3 | 11.0 | 9.8 | 10.1 |
--------------------------------------------------------------------------------
| Total equity | 187.2 | 197.9 | 230.2 | 236.4 | 251.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | | | |
--------------------------------------------------------------------------------
| Long-term loans | 159.4 | 159.3 | 179.6 | 179.4 | 179.6 |
--------------------------------------------------------------------------------
| Other long-term debt | 5.0 | 4.9 | 5.0 | 5.1 | 4.5 |
--------------------------------------------------------------------------------
| Long-term liabilities, | 164.4 | 164.2 | 184.6 | 184.5 | 184.1 |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Current loans | 75.7 | 77.5 | 49.8 | 56.6 | 64.8 |
--------------------------------------------------------------------------------
| Other current | 544.7 | 625.6 | 718.0 | 647.0 | 607.3 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Provisions | 3.7 | 6.5 | 7.5 | 7.5 | 8.5 |
--------------------------------------------------------------------------------
| Current liabilities, | 624.1 | 709.6 | 775.4 | 711.1 | 680.6 |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities classified | 0.7 | 20.5 | - | - | - |
| as held for sale | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | | | |
--------------------------------------------------------------------------------
| AND LIABILITIES, TOTAL | 976.4 | 1,092.3 | 1,190.2 | 1,132.0 | 1,116.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel on average | 17,894 | 19,131 | 19,433 | 19,714 | 19,065 |
| during the period | | | | | |
--------------------------------------------------------------------------------
| Gross capital | 27.7 | 27.8 | 14.8 | 13.4 | 11.2 |
| expenditures, MEUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ROI/ROCE from 12 | -10.7 | -19.6 | -12.0 | -9.4 | -2.9 |
| preceding months, % | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | -0.35 | -1.06 | -0.19 | -0.64 | -1.49 |
| (EPS), A-shares, EUR | | | | | |
--------------------------------------------------------------------------------
| Solvency, % | 19.2 | 18.1 | 19.4 | 20.9 | 22.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW | Q1/2008 | Q4/2007 | Q3/2007 | Q2/2007 | Q1/2007 |
| STATEMENT, MEUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | 1.3 | 5.2 | 13.1 | -2.3 | -4.3 |
| change in working | | | | | |
| capital | | | | | |
--------------------------------------------------------------------------------
| Change in working | 24.7 | 33.6 | 33.9 | -5.9 | -18.4 |
| capital | | | | | |
--------------------------------------------------------------------------------
| Financial items and | -7.5 | -6.1 | -3.8 | -1.2 | -8.6 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | 18.4 | 32.7 | 43.2 | -9.5 | -31.2 |
| operating activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of | -20.0 | -26.2 | -18.0 | -12.5 | -10.4 |
| non-current assets | | | | | |
--------------------------------------------------------------------------------
| Disposals of | 0.5 | 15.4 | 3.7 | 1.0 | 0.7 |
| non-current assets | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before | -1.1 | 21.9 | 28.9 | -21.0 | -40.9 |
| financing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds from share | - | - | - | 6.7 | - |
| issue | | | | | |
--------------------------------------------------------------------------------
| Redemption of parent | - | -0.1 | - | - | - |
| company shares | | | | | |
--------------------------------------------------------------------------------
| Change in current debt | 2.4 | 9.3 | -4.5 | -8.8 | 34.4 |
--------------------------------------------------------------------------------
| Repayment of long-term | - | -0.2 | - | -0.2 | -0.2 |
| debt | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | - | -1.5 | -7.4 | - |
--------------------------------------------------------------------------------
| Cash flow from | 2.4 | 9.1 | -6.0 | -9.7 | 34.3 |
| financing activities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and | 1.3 | 30.9 | 23.0 | -30.8 | -6.6 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents | 92.7 | 65.8 | 44.4 | 75.4 | 82.3 |
| at the beginning of | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Cash and equivalents | -0.2 | -3.2 | - | - | - |
| classified as held for | | | | | |
| sale | | | | | |
--------------------------------------------------------------------------------
| Effect of exchange | -1.9 | -0.8 | -1.6 | -0.2 | -0.3 |
| rate changes on cash | | | | | |
| held | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents | 91.9 | 92.7 | 65.8 | 44.4 | 75.4 |
| at the end of period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS AREAS, MEUR | Q1/2008 | Q4/2007 | Q3/2007 | Q2/2007 | Q1/2007 |
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Personal | 688.4 | 750.1 | 740.1 | 628.8 | 658.8 |
| Communications | | | | | |
--------------------------------------------------------------------------------
| Home Communications | 81.4 | 99.8 | 102.8 | 123.2 | 108.4 |
--------------------------------------------------------------------------------
| Communications | 139.0 | 212.5 | 216.8 | 216.4 | 185.3 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Total | 908.7 | 1,062.4 | 1,059.7 | 968.3 | 952.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´s operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Personal | 5.4 | -1.9 | 7.0 | -9.4 | -25.8 |
| Communications | | | | | |
--------------------------------------------------------------------------------
| Home Communications | -0.5 | 3.2 | -1.0 | -2.0 | -11.0 |
--------------------------------------------------------------------------------
| Communications | -4.2 | -17.2 | 2.4 | 2.2 | -4.7 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Group´s non-allocated | -10.1 | -9.0 | -8.5 | -9.8 | -10.8 |
| expenses/income | | | | | |
--------------------------------------------------------------------------------
| Total | -9.5 | -24.9 | -0.1 | -19.0 | -52.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Restructuring expenses | | | | | |
| recognized in | | | | | |
| segment´s operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Personal | - | -1.3 | -0.9 | -2.9 | -21.4 |
| Communications | | | | | |
--------------------------------------------------------------------------------
| Home Communications | - | -1.3 | -1.2 | 0.0 | -6.9 |
--------------------------------------------------------------------------------
| Communications | - | -12.6 | 0.3 | -0.3 | -1.4 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Group´s non-allocated | - | 0.0 | 0.0 | 0.1 | -0.4 |
| expenses/income | | | | | |
--------------------------------------------------------------------------------
| Total | - | -15.3 | -1.8 | -3.1 | -30.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICAL AREAS, | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| MEUR | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Net Sales | | | | | |
--------------------------------------------------------------------------------
| Europe | 465.4 | 557.5 | 530.2 | 481.0 | 507.6 |
--------------------------------------------------------------------------------
| Asia-Pacific | 214.4 | 293.9 | 313.7 | 272.1 | 231.2 |
--------------------------------------------------------------------------------
| Americas | 228.9 | 211.1 | 215.7 | 215.2 | 213.6 |
--------------------------------------------------------------------------------
| Total | 908.7 | 1,062.4 | 1,059.7 | 968.3 | 952.5 |
--------------------------------------------------------------------------------
