Elcoteq SE Stock Exchange Release April 26, 2007, at 9.00 am (EET)
ELCOTEQ SE'S INTERIM REPORT JANUARY-MARCH 2007 (UNAUDITED)
Elcoteq SE's net sales between January and March totaled 952.5 million
euros (981.1 in January-March 2006). Operating income was -52.4 million
euros (8.3) and excluding restructuring costs -22.3 million euros.
- Net sales 952.5 million euros (981.1)
- Operating income -52.4 million euros (8.3)
- Operating income includes 30.1 million euros in one-time restructuring
costs. An additional 5 million euros in restructuring costs in 2007 will
be recognized later.
- Operating income excluding restructuring costs -22.3 million euros
(8.3)
- Income before taxes -59.0 million euros (2.9)
- Earnings per share (EPS) -1.49 euros (0.07)
- Cash flow after investing activities -40.9 million euros (14.2)
- Rolling 12-month return on capital employed -2.9% (16.0%)
- Gearing 0.7 (0.3)
This interim report has been prepared using IFRS recognition and
measuring principles. The tables have been prepared in compliance with
the IAS 34 requirements approved by the EU.
Net Sales and Result
Elcoteq recorded net sales of 952.5 million euros (981.1) between January
and March. Operating income,
-52.4 million euros (8.3), included restructuring costs totaling 30.1
million euros related to the company's action plan to restore its
profitability and competitiveness. The weak operating income is due to
low production volumes, price pressure experienced by the Communications
Networks business area, and production problems in Mexico.
The Group's net financial expenses were 6.4 million euros (5.1). Income
before taxes was -59.0 million euros (2.9) and net income totaled -46.9
million euros (2.1). Earnings per share (EPS) were -1.49 euros (0.07).
The Group's gross capital expenditures on fixed assets between January
and March were 11.2 million euros (16.0) or 1.2% of net sales.
Depreciation amounted to 20.1 million euros (18.9).
Financing and Cash Flow
Cash flow after investing activities was -40.9 million euros (14.2). Cash
flow was burdened, in addition to the weak result, by a deterioration in
turnover of net working capital compared to the end of 2006, caused by
the timing and customer breakdown of deliveries and by changes to certain
agreements. Furthermore, the cash flow received by the Group from sold
accounts receivable decreased by 17.4 million euros from the end of 2006
(187.7 million euros) to a total of 170.3 million euros at the end of
March. The solvency ratio was 22.5% (23.5%) and gearing was 0.7 (0.3).
At the end of March Elcoteq has unused but immediately available credit
limits totaling 294.9 million euros (293.8 million euros at the end of
2006), which included a syndicated loan with a committed credit limit of
230 million euros. Commercial papers issued by the Group had a total
nominal value of 30.0 million euros on March 31, 2007.
Business Areas
Elcoteq has two business areas: Terminal Products and Communications
Networks. In the first quarter Terminal Products contributed 81% (82%)
and Communications Networks 19% (18%) to the Group's net sales.
Elcoteq's sales to companies within the Ericsson and Nokia groups during
the first quarter decreased by roughly 20% compared to the same period
last year and the aggregate contribution of these companies to Elcoteq's
consolidated net sales amounted to 58.5% (72.0%). These figures do not
include business activities with Sony Ericsson. Net sales from customers
not belonging to the Nokia and Ericsson groups, in contrast, increased by
more than 40% from the comparison period and Research in Motion (RIM)
rose to become Elcoteq's second largest customer.
Net sales of the Terminal Products business area were slightly lower in
the first quarter than one year earlier, standing at 767.2 million euros
(808.0). The segment's operating income was -36.9 million euros (15.9),
or -4.8% of its net sales. Operating income excluding restructuring costs
was -8.6 million euros. Operating income was weakened by lower production
volumes, lower prices and production problems in Mexico.
Net sales of the Communications Networks business area increased by
roughly 7% on last year's first quarter to 185.3 million euros (173.1).
The segment's operating income was -4.7 million euros (4.6), or -2.5% of
its net sales and, excluding the restructuring costs, -3.3 million euros.
Underlying the weaker operating income were heavy pressure on prices,
especially in Europe, and lower than forecast production volumes from new
customers acquired during the second half of 2006.
In March Elcoteq signed a multi-year manufacturing services contract with
Redline Communications. Elcoteq is Redline's primary EMS provider of
manufacturing services for WiMAX Forum Certified base station and end-
user devices as well as its RedCONNEX backhaul products.
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 507.6 million euros (530.5), Asia-Pacific 231.2 million
euros (253.8) and Americas 213.6 million euros (196.8).
Personnel
At the end of March the Elcoteq Group employed 23,452 people (21,842):
666 (881) in Finland and 22,786 (20,961) elsewhere. The geographical
distribution of the workforce was as follows: Europe 10,822 (10,568),
Asia-Pacific 7,459 (7,403) and Americas 5,171 (3,871). The average number
of Elcoteq employees on the company's direct payroll between January and
March was 19,065 (15,748).
Progress in Action Plan
The action plan initiated in order to restore Elcoteq's cost-efficiency,
profitability and competitiveness has proceeded according to plan. The
aim of the plan, which particularly concerns the company's operations in
Europe and Americas, is to achieve annual savings in the region of 20
million euros.
The actions taken in Europe include, among other things, personnel
negotiations concerning the Lohja manufacturing plant and the NPI
organization in Finland, which have resulted in 242 redundancies on
production and economic grounds and the closure of the Lohja plant by the
end of August.
The personnel negotiations in Finland also applied to the Group's
corporate office and product development organization and have resulted
in 84 redundancies on production and economic grounds. At the same time
the company decided to close the Elcoteq Design Center in Turku and move
this unit's operations to Salo.
In Americas, Elcoteq has decided to close the Juarez plant in Mexico by
the end of the year. The plant's production will be moved mainly to China
and partly also to the Monterrey plant in Mexico. The Juarez plant had
2,335 employees at the end of March. Additionally, the company's Americas
office in Dallas, USA, will be moved to the premises occupied by the
Dallas NPI Center.
The action plan will induce one-time restructuring costs totaling roughly
35 million euros, 30.1 million euros of which has been entered in the
first-quarter result. The Lohja plant accounts for almost 5 million euros
of the restructuring costs, the Juarez plant for approximately 9 million
euros, the product development organization for about 6 million euros,
and the writedowns of the design-related Cellon holding and receivables
for around 14 million euros.
The costs arising at the Lohja and Juarez plants relate mainly to
redundancies, rent commitments, writedowns of fixed assets and production
transfers. Of these items, certain costs related to the termination of
employment contracts and to production transfers were not entered in the
first-quarter result but will be recognized under restructuring costs as
they occur during the current year. These costs amount to approximately 5
million euros.
The restructuring costs arising from Elcoteq's own product development
organization are mainly attributable to a 3.4 million euro writedown of
goodwill, as well as writedowns of the balance sheet carrying values of
certain projects, and the termination of employee and rental contracts.
The value of the Cellon holding has been based primarily on the value in
use of the EMS services made available to Elcoteq through Cellon. Owing
to the changes in Elcoteq's own product development organization and to
Cellon's financial and structural situation, utilizing this partnership
in the originally intended manner no longer seems possible and the entire
holding has been written down. Cellon International is a wireless
terminal products design company in which Elcoteq has held a minority
stake since the co-operation agreement was signed in 2003.
Approximately 12 million euros of the 35 million euro restructuring costs
affect the company's cash flow. The cash flow items will mostly be
recognized during 2007, although it is possible that items related to
lease commitments could also be paid during 2008 and 2009.
In addition to the action plan, Elcoteq is also undertaking other
streamlining measures including a global program to raise production
efficiency at all the company's manufacturing plants and the adoption of
a new contract and invoicing model in Europe.
Short-Term Risks and Uncertainty Factors
The most important short-term challenges with respect to Elcoteq's
business operations concern the company's ability to improve its cost
structure and thus its profitability sufficiently fast as market
conditions become increasingly tight, coupled with its ability to offer
relevant service packages corresponding to customer demand and needs.
Shares and Shareholders
At the end of March 2007 the company had 31,539,877 shares divided into
20,962,877 Series A shares and 10,577,000 Series K shares. All the K
shares are held by the company's three principal owners.
Elcoteq had 11,078 shareholders on March 31, 2007. There were a total of
8,480,438 nominee-registered and foreign-registered shares, or 26.9% of
the share capital and 6.7% of the votes outstanding.
Altogether 550 new Elcoteq A shares were subscribed between December 14,
2006 and January 26, 2007 under Elcoteq SE's 2001 stock option scheme.
The share subscription price was 6.53 euros as stipulated in the option
scheme's conditions. Elcoteq's share capital rose by altogether 220 euros
as a result of these subscriptions to 12,615,950.80 euros. The share
subscription period ends on April 30, 2007.
Decisions of the Annual General Meeting
Elcoteq SE's Annual General Meeting took place in Helsinki, Finland, on
March 22, 2007. The Meeting approved the Board's proposal to distribute a
dividend of 0.20 euros per share on the financial year 2006. The Meeting
decided that the company's domicile will be transferred from the city of
Lohja in Finland to the Grand Duchy of Luxembourg. The transfer is
currently expected to take place on January 1, 2008.
The Meeting also authorized the Board of Directors to issue Series A
shares and/or to issue specific rights entitling to shares pursuant to
Chapter 10 §1 of the Finnish Companies Act, in the total amount of
15,527,573 Series A shares, as well as to purchase the company's own
Series A shares. The authorization to issue shares includes the right to
disapply the pre-emptive subscription right of the shareholders. The
authorization to issue shares is in effect for five years and the
authorization to purchase the company's own Series A shares 18 months
from the Meeting's decision. Both authorizations, however, become void on
transfer of the company's domicile, which is currently expected to take
place on January 1, 2008.
The Meeting elected seven members to the Board of Directors. The
composition of the Board remained unchanged. The following persons were
re-elected: President Martti Ahtisaari; Mr Heikki Horstia, Vice
President, Treasurer, Wärtsilä Corporation; Dr 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, MSc, and Mr Jorma Vanhanen, founder-
shareholder of Elcoteq SE. The terms of office of the Board members
extend until the end of the following Annual General Meeting. Ahtisaari,
Horstia, Kasanen and Toivola are independent Board members, and they
represent more than half of the Board's members.
At its constitutive meeting after the AGM, the Board of Directors elected
Antti Piippo as its chairman and Juha Toivola as its deputy chairman.
Antti Piippo was elected chairman of the Nomination Committee and the
Working Committee and Henry Sjöman, Jorma Vanhanen and Juha Toivola as
the other members of these committees. Juha Toivola was elected chairman
of the Compensation Committee and Audit Committee and Martti Ahtisaari,
Heikki Horstia and Eero Kasanen as the other members of these committees.
The Meeting decided that the firm of authorized public accountants KPMG
Oy Ab under the supervision of principal auditor Mr Mauri Palvi (APA)
will continue as the company's auditors. From the transfer of domicile,
which is currently expected to take place on January 1, 2008, the
auditors will be KPMG Audit S.à.r.l. until the end of the following
Annual General Meeting.
Prospects
Elcoteq forecasts that its full-year net sales will increase only
slightly on last year's and that its operating income excluding
restructuring costs will be on a break-even level.
Net sales in the second quarter of 2007 are expected to be slightly
higher than in the first quarter. Operating income excluding
restructuring costs is forecast to improve on the first quarter but still
to be negative.
Elcoteq's forecasts are based on the company's view of market growth and
on the project-specific forecasts of its customers, based on which
Elcoteq makes its own forecasts of the realization of agreed and planned
new projects.
Elcoteq's Board of Directors has approved a plan that will significantly
increase and broaden Elcoteq's current service offering (EMS) into
integrated electronics manufacturing services (IEMS). The change includes
development of existing operating models, as well as M&A arrangements and
various forms of collaboration with other companies operating in the same
field.
Espoo, Finland
April 25, 2007
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, +358 10 413 11
Teo Ottola, CFO, tel. +358 10 413 1240
Reeta Kaukiainen, Director, Communications and IR, tel. +358 10 413 1742
or +358 50 522 0924
Press Conference and Webcast
Elcoteq will hold a combined press conference, conference call and
webcast in English at 2.30 pm (EET) on Thursday April 26, in the Akseli
Gallen-Kallela Room of Hotel Kämp (address: Pohjoisesplanadi 29,
Helsinki, Finland).
To participate by phone, please call 5 - 10 minutes before the start of
the conference on +44 20 7162 0025 (Europe) or +1 334 323 6201 (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.
The 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 26.
Elcoteq will publish its second-quarter interim report at 9.00 am (EET)
on Wednesday, July 25, 2007.
Enclosures:
1 Income statement
2 Balance sheet
3 Cash flow statement
4 Calculation of changes in shareholders' equity
5 Calculation of key figures
6 Key figures
7 Writedowns of non-current assets
8 Business areas
9 Assets pledged and contingent liabilities
10 Quarterly figures
APPENDIX 1
INCOME STATEMENT, 1-3/ 1-3/ Change, 1-12/
MEUR 2007 2006 % 2006
NET SALES 952.5 981.1 -2.9 4,284.3
Change in work in
progress
and finished goods 1.3 12.6 90.0 17.3
Other operating 1.0 1.7 -40.9 7.0
income
Operating expenses -957.0 -968.2 -1.2 -4,182.0
Restructuring costs -30.1 - -
Depreciation and
writedowns -20.1 -18.9 6.5 -82.7
OPERATING INCOME -52.4 8.3 43.9
% of net sales -5.5 0.8 1.0
Financial income and
expenses -6.4 -5.1 25.9 -23.7
Share of profits and
losses of associates -0.3 -0.3 -13.6 -1.0
INCOME BEFORE TAXES -59.0 2.9 19.2
Income taxes 12.4 -0.8 -4.7
NET INCOME FOR THE PERIOD -46.6 2.1 14.6
ATTRIBUTABLE TO:
Equity holders of the -46.9 2.1 12.1
parent company *)
Minority interests 0.3 -0.0 2.5
-46.6 2.1 14.6
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
March Dec. 31, Change,%
BALANCE SHEET, MEUR 31, 2006
2007
ASSETS
Non-current assets
Intangible assets 38.8 45.4 -14.4
Tangible assets 227.3 245.0 -7.2
Investments 2.6 13.7 -80.7
Long-term 28.6 15.3 86.7
receivables
Non-current assets, 297.4 319.4 -6.9
total
Current assets
Inventories 346.4 359.0 -3.5
Current receivables 390.1 402.9 -3.2
Cash and equivalents 75.4 82.3 -8.3
Assets classified as 6.7 -
held for sale *)
Current assets, total 818.6 844.2 -3.0
ASSETS, TOTAL 1,116.0 1,163.6 -4.1
*) Assets classified as held for sale are measured at fair value.
Asset writedowns are recognized under restructuring costs.
SHAREHOLDERS' EQUITY AND
LIABILITIES
Equity attributable to equity holders of the parent
company
Share capital 12.6 12.6 0.0
Other 228.5 281.0 -18.7
shareholders' equity
Equity attributable to 241.1 293.7 -17.9
equity holders of the
parent company, total
Minority interests 10.1 9.6 5.0
Total equity 251.2 303.3 -17.2
Long-term liabilities
Long-term loans 179.6 179.7 0.0
Other long-term debt 4.5 5.2 -12.3
Long-term 184.1 184.8 -0.4
liabilities, total
Current liabilities
Current loans 64.8 30.6 112.2
Other current 607.3 643.1 -5.6
liabilities
Provisions 8.5 1.8 365.7
Current liabilities, 680.6 675.5 0.8
total
SHAREHOLDERS' EQUITY
AND LIABILITIES, 1,116.0 1,163.6 -4.1
TOTAL
APPENDIX 3
CONSOLIDATED CASH FLOW STATEMENT, MEUR
1-3/ 1-3/ Change,% 1-12/
2007 2006 2006
Cash flow before change in
working capital -4.3 25.2 114.2
Change in working -18.4 12.6 -16.1
capital *)
Financial items and -8.6 -7.3 17.7 -33.2
taxes
Cash flow from operating
activities -31.2 30.6 65.0
Purchases of non-current -10.4 -17.4 -40.2 -108.9
assets
Disposals of non-current 0.7 1.1 -36.4 23.2
assets
Cash flow before financing
activities -40.9 14.2 -20.8
Proceeds from share 0.0 0.5 2.9
issue
Change in current 34.4 -1.7 -7.5
debt
Issuance of long-term - 29.8 29.8
debt
Repayment of long- -0.2 - -0.5
term debt
Dividends paid - - -20.6
Cash flow from financing
activities 34.3 28.6 19.8 4.2
Change in cash and -6.6 42.8 -16.5
equivalents
Cash and equivalents on 82.3 101.4 -18.8 101.4
January 1
Effect of exchange rate
changes on cash held -0.3 -0.7 -64.1 -2.5
Cash and equivalents at
the end of the period 75.4 143.5 -47.4 82.3
*)The change in working capital includes the change in
sold accounts receivable.
The impact of this change is to weaken cash flow by 17.4
million euros during the reporting period 1-3/2007 and to
improve cash flow by 41.7 million euros during 1-3/2006.
**) The change in current debt during the reporting period 1-
3/2007 includes the change in issurance of commercial papers
with a nominal value of 30 million euros.
APPENDIX 4
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY,
MEUR
Attributable to equity holders of Minority Total
the parent
interests equity
Share Additi Othe Trans- Retai- Total
capit o- r lation ned
al nal rese differ-
paid- r- earn-
in ves
capital ences ings
Balance at Jan.
1, 2007 12.6 218.7 8.4 -1.9 55.8 293.7 9.6 303.3
Issue of share 0.0 0.0 0.0 0.0
capital
Equity hedge of 0.3 0.3 0.3
subsidiaries
Translation 0.3 0.3 0.2 0.5
differences
Share-based 0.1 0.1 0.1
payments
Dividends -6.3 -6.3 -6.3
Net income - - 0.3 -46.6
46.9 46.9
Balance at
March 12.6 218.7 8.4 -1.3 2.7 241.1 10.1 251.2
31, 2007
Balance at
Jan. 1, 2006 12.4 216.0 8.4 -2.9 63.1 297.0 6.9 303.9
Issue of 0.0 0.5 0.5 0.5
share
capital
Equity hedge 0.4 0.4 0.4
of
subsidiaries
Translation -0.4 -0.4 - -0.5
differences 0.1
Share-based 0.5 0.5 0.5
payments
Dividends - - -20.6
20.6 20.6
Net income 2.1 2.1 0.0 2.1
Balance at
March 31, 12.5 216.4 8.4 -2.9 45.1 279.5 6.7 286.3
2006
APPENDIX 5
FORMULAS FOR THE CALCULATION OF FINANCIAL
RATIOS
Return on equity Net income x 100
(ROE) =
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 Net income attributable to equity holders of
(EPS) = the parent
Adjusted average number of shares
outstanding during the period
Diluted earnings
per share, (EPS) = Net income attributable to equity holders of
the parent
Adjusted average number of shares
outstanding during the period
+effect of dilution on the number of shares
Current ratio = Current assets
Current liabilities
Solvency = Total equity x 100
Total assets - advance payments
received
Gearing = Interest-bearing liabilities - cash and
equivalents
Total
equity
Shareholders'
equity per share = Equity attributable to equity holders of the
parent company
Adjusted number of shares outstanding at the
end of the period
APPENDIX 6
KEY FIGURES 1-3/ 1-3/ Change, % 1-12/
2007 2006 2006
Personnel on average
during the period 19,065 15,748 21.1 16,651
Gross capital
expenditures, MEUR 11.2 16.0 -30.0 116.9
Return on equity -16.8 0.7 4.8
(ROE), %
Return on investment
(ROI/ROCE), % -10.3 1.8 9.1
From 12 preceding
months:
Return on equity -12.7 14.3 4.8
(ROE), %
Return on investment
(ROI/ROCE), % -2.9 16.0 9.1
Earnings per share -1.49 0.07 0.38
(EPS), EUR
Diluted earnings per
share (EPS), EUR -1.47 0.07 0.37
Current ratio 1.2 1.2 1.2
Solvency, % 22.5 23.5 26.1
Gearing 0.7 0.3 0.4
Shareholders' equity per
share, EUR 7.64 8.97 -14.8 9.31
Interest-bearing
liabilities, MEUR 244.6 219.1 11.6 210.3
Interest-bearing net
debt, MEUR 169.2 75.6 123.8 128.0
Non-interest-bearing
liabilities, MEUR 620.1 714.6 -13.2 650.0
APPENDIX 7
WRITEDOWNS MADE TO THE NON-
CURRENT ASSETS, MEUR 1-3/2007
Writedowns made to the non-current assets
Intangible assets 4.2
Tangible assets 3.0
Investments 10.9
Writedowns made to the 18.1
non-current assets,
total
The writedowns made to non-current assets have
been entered as restructuring costs in the
income statement.
APPENDIX 8
BUSINESS AREAS, MEUR 1-3/ 1-3/ 1-12/
2007 2006 2006
Net sales
Terminal 767.2 808.0 3,512.1
Products
Communications 185.3 173.1 772.3
Networks
Total 952.5 981.1 4,284.3
Segment´s operating
income
Terminal -36.9 15.9 68.4
Products
Communications -4.7 4.6 22.4
Networks
Group´s non-allocated -10.8 -12.3 -46.8
expenses/income
Total -52.4 8.3 43.9
Of the 30.1 million euro restructuring costs recognized in the
first quarter of 2007, 28.3 million euros have been entered
against Terminal Products' operating income, 1.4 million euros
against Communications Networks' operating income and 0.4 million
euros under Group's non-allocated expenses.
Elcoteq´s share of associated company results in the first
quarter of 2007 totaled -0.3 million euros (-0.3). Associated
company results for the full year 2006 totaled -1.0 million
euros. The share of associated company results is allocated to
the Group's non-allocated expenses/income.
APPENDIX 9
ASSETS PLEDGED AND CONTINGENT LIABILITIES, MEUR
March March Change, Dec.
31, 2007 31, 2006 % 31, 2006
ON BEHALF OF OTHERS
Guarantees 0.0 0.0 0.0
LEASING COMMITMENTS
Operating leases. production
machinery
and equipment (excl. 42.1 42.2 -0.2 48.2
VAT)
Rental commitments,
real-estate (excl. 27.9 29.4 -5.1 27.6
VAT)
DERIVATIVE CONTRACTS
Currency forward contracts,
transaction risk
Nominal value 280.3 283.6 -1.2 275.4
Fair value -0.9 -3.1 -71.0 -5.1
Currency forward contracts,
translation risk
Nominal value 39.9 26.9 48.3 35.5
Fair value 0.3 0.2 50.0 0.3
Currency forward contracts,
financial risk
Nominal value 150.8 132.2 14.1 131.1
Fair value -0.0 -0.3 -100.0 -0.0
Interest rate and foreign exchange swap
contracts
Nominal value 4.0 2.5 60.0 4.0
Fair value 0.1 -0.1 0.1
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, Q1/ Q4/ Q3/ Q2/ Q1/
MEUR 2007 2006 2006 2006 2006
NET SALES 952.5 1,104.6 1,169.1 1,029.6 981.1
Change in work
in progress
and finished goods 1.3 -8.1 19.4 -6.5 12.6
Other operating 1.0 3.2 1.0 1.1 1.7
income
Operating expenses -957.0 - -1,151.0 -991.9 -968.2
1,070.9
Restructuring costs -30.1 - - - -
Depreciation and -20.1 -22.0 -21.8 -20.1 -18.9
writedowns
OPERATING INCOME -52.4 6.9 16.6 12.2 8.3
% of net sales -5.5 0.6 1.4 1.2 0.8
Financial income and
expenses -6.4 -7.4 -6.2 -5.0 -5.1
Share of profits and
losses of associates -0.3 -0.3 -0.2 -0.2 -0.3
INCOME BEFORE TAXES -59.0 -0.8 10.1 7.0 2.9
Income taxes 12.4 1.6 -3.4 -2.0 -0.8
NET INCOME FOR THE -46.6 0.8 6.7 5.0 2.1
PERIOD
ATTRIBUTABLE TO:
Equity holders of the -46.9 -0.3 5.9 4.4 2.1
parent company
Minority interests 0.3 1.1 0.8 0.6 -0.0
-46.6 0.8 6.7 5.0 2.1
BALANCE SHEET, MEUR Q1/ Q4/ Q3/ Q2/ Q1/
2007 2006 2006 2006 2006
ASSETS
Non-current assets
Intangible assets 38.8 45.4 47.8 49.4 48.2
Tangible assets 227.3 245.0 263.6 242.1 238.2
Investments 2.6 13.7 14.0 14.0 14.0
Long-term 28.6 15.3 14.2 11.2 10.6
receivables
Non-current assets, 297.4 319.4 339.6 316.7 311.0
total
Current assets
Inventories 346.4 359.0 407.4 366.1 339.6
Current receivables 390.1 402.9 518.1 447.9 425.7
Cash and 75.4 82.3 102.4 41.0 143.5
equivalents
Assets classified 6.7 - - - -
as held for sale
Current assets, total 818.6 844.2 1,028.0 854.9 908.9
ASSETS, TOTAL 1,116.0 1,163.6 1,367.6 1,171.7 1,219.9
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
company
Share capital 12.6 12.6 12.6 12.6 12.5
Other
shareholders' 228.5 281.0 279.9 272.9 267.1
equity
Equity attributable to equity
holders
of the parent
company, total 241.1 293.7 292.5 285.4 279.5
Minority interests 10.1 9.6 7.9 7.0 6.7
Total equity 251.2 303.3 300.4 292.5 286.3
Long-term liabilities
Long-term loans 179.6 179.7 179.9 179.9 180.0
Other long-term debt 4.5 5.2 4.3 4.1 3.7
Long-term
liabilities, total 184.1 184.8 184.3 184.0 183.7
Current liabilities
Current loans 64.8 30.6 92.0 26.2 38.7
Other current 607.3 643.1 788.3 666.3 708.9
liabilities
Provisions 8.5 1.8 2.5 2.7 2.5
Current liabilities, 680.6 675.5 882.9 695.2 750.0
total
SHAREHOLDERS' EQUITY
AND LIABILITIES, 1,116.0 1,163.6 1,367.6 1,171.7 1,219.9
TOTAL
Personnel on average
during the period 19,065 17,431 16,930 16,581 15,748
Gross capital
expenditures, MEUR 11.2 32.3 38.5 30.1 16.0
ROI/ROCE from 12
preceding months, % -2.9 9.1 12.1 15.7 16.0
Earnings per share
(EPS), EUR -1.49 -0.01 0.19 0.14 0.07
Solvency, % 22.5 26.1 22.0 25.0 23.5
CONSOLIDATED CASH Q1/ Q4/ Q3/ Q2/ Q1/
FLOW STATEMENT, MEUR 2007 2006 2006 2006 2006
Cash flow before -4.3 23.8 36.8 28.4 25.2
change in working
capital
Change in working -18.4 30.7 13.7 -73.1 12.6
capital
Financial items and -8.6 -11.6 -7.7 -6.6 -7.3
taxes
Cash flow from
operating activities -31.2 43.1 42.6 -51.3 30.6
Purchases of non-
current assets -10.4 -18.2 -48.8 -24.5 -17.4
Disposals of non-
current assets 0.7 16.4 1.5 4.2 1.1
Cash flow before
financing activities -40.9 41.2 -4.7 -71.5 14.2
Proceeds from share 0.0 0.5 0.5 1.4 0.5
issue
Change in current 34.4 -60.9 65.4 -10.3 -1.7
debt
Issuance of long-term - - - - 29.8
debt
Repayment of long-
term debt -0.2 -0.2 -0.1 -0.2 -
Dividends paid - - - -20.6 -
Cash flow from
financing activities 34.3 -60.6 65.9 -29.7 28.6
Change in cash and
equivalents -6.6 -19.3 61.1 -101.1 42.8
Cash and equivalents
at the beginning of 82.3 102.4 41.0 143.5 101.4
the period
Effect of exchange
rate changes on cash -0.3 -0.8 0.4 -1.4 -0.7
held
Cash and equivalents
at the end of period 75.4 82.3 102.4 41.0 143.5
Q1/ Q4/ Q3/ Q2/ Q1/
BUSINESS AREAS, MEUR 2007 2006 2006 2006 2006
Net sales
Terminal 767.2 898.6 967.9 837.6 808.0
Products
Communications 185.3 206.0 201.2 192.0 173.1
Networks
Total 952.5 1,104.6 1,169.1 1,029.6 981.1
Segment´s operating
income
Terminal -36.9 13.2 18.6 20.7 15.9
Products
Communications -4.7 5.7 8.8 3.2 4.6
Networks
Group´s non- -10.8 -12.1 -10.8 -11.6 -12.3
allocated
expenses/income
Total -52.4 6.9 16.6 12.2 8.3
Of the 30.1 million euro restructuring costs recognized in the
first quarter of 2007, 28.3 million euros have been entered
against Terminal Products' operating income, 1.4 million euros
against Communications Networks' operating income and 0.4 million
euros under Group's non-allocated expenses.
Q1/ Q4/ Q3/ Q2/ Q1/
GEOGRAPHICAL AREAS, 2007 2006 2006 2006 2006
MEUR
Net sales
Europe 507.6 635.8 659.4 599.7 530.5
Asia-Pacific 231.2 260.3 307.2 272.8 253.8
Americas 213.6 208.5 202.4 157.1 196.8
Total 952.5 1,104.6 1,169.1 1,029.6 981.1