2007-10-24 08:00:29 CEST
2007-10-24 08:00:29 CEST
REGULATED INFORMATION
Elcoteq - Quarterly report
ELCOTEQ SE'S INTERIM REPORT JANUARY - SEPTEMBER 2007 (unaudited)
Elcoteq SEStock Exchange Release October 24, 2007 at 9.00 am (EET)
ELCOTEQ SE'S INTERIM REPORT JANUARY - SEPTEMBER 2007 (unaudited)
Elcoteq's third-quarter net sales rose by about 10% on the second quarter of the
current year and totaled 1,059.7 million euros (1,169.1 million euros in July -
September 2006). Operating income in the third quarter was -0.1 million euros
(16.6); excluding restructuring costs, it was 1.7 million euros positive. The
action plan and measures to raise operational efficiency proceeded as planned.
These measures have improved the operating income of the Terminal Products
business area in particular.
July - September
- Third-quarter net sales amounted to 1,059.7 million euros (1,169.1 in July -
September 2006)
- Operating income was -0.1 million euros (16.6). Operating income included
restructuring costs amounting to 1.8 million euros, excluding which operating
income was 1.7 million euros.
- Income before taxes was -7.5 million euros (10.1)
- Earnings per share (EPS) amounted to -0.19 euros (0.19)
- Rolling 12-month return on capital employed (ROCE) was -12.0% (12.1%)
- Cash flow after investing activities was 28.9 million euros (-4.7)
- Gearing was 0.7 (0.6)
January - September
- Net sales in January - September were 2,980.5 million euros (3,179.7 million
euros in January - September 2006)
- Operating income was -71.5 million euros (37.0). Operating income included
restructuring costs of 34.9 million euros, excluding which operating income was
-36.5 million euros.
- Income before taxes was -91.6 million euros (20.0)
- Earnings per share (EPS) were -2.30 euros (0.40)
- Cash flow after investing activities was -33.0 million euros (-62.0)
- Interest-bearing net debt amounted to 164.0 million euros (169.9)
This interim report has been prepared using IFRS recognition and measurement
principles. The tables have been prepared in compliance with the IAS 34
requirements approved by the EU. The comparative figures presented in the body
of the report are the figures for the corresponding period of the previous year,
unless stated otherwise.
July - September
The Group's net sales in the third quarter were up about 10% on the second
quarter of 2007, amounting to 1,059.7 million euros (1,169.1 million euros in
the third quarter of 2006 and 968.3 million euros in the second quarter of
2007). Compared to the second quarter of 2007, the net sales of the Terminal
Products business area grew by some 12% thanks to higher demand from numerous
customers, and totaled 842.9 million euros. Net sales of the Communications
Networks business area remained on par with the second quarter, amounting to
216.8 million euros. However, consolidated third-quarter net sales fell short of
the company's expectations, mainly because mobile phone deliveries to Nokia
underperformed forecasts.
Operating income was -0.1 million euros (16.6). Operating income includes
restructuring costs of 1.8 million euros associated with the action plan,
excluding which operating income was 1.7 million euros positive. Operating
income excluding restructuring costs improved substantially on the second
quarter, when it was 15.9 million euros negative. Major factors behind this
improvement are the cost-savings achieved through the action plan, but also the
improvement in operational efficiency. In addition, the company made progress in
rectifying the production problems encountered earlier in Mexico.
The Group's net financial expenses amounted to 7.3 million euros. Income before
taxes was -7.5 million euros (10.1) and net income was -6.3 million euros (5.9).
Earnings per share were -0.19 euros (0.19).
The Group's gross capital expenditures on fixed assets in the third quarter
totaled 14.8 million euros (38.5) or 1.4% of net sales. A large proportion of
investments was allocated to testing equipment, particularly in Terminal
Products. Depreciation was 20.4 million euros (21.8).
Cash flow after investing activities in the third quarter amounted to 28.9
million euros (-4.7). In the third quarter, the Group received value-added tax
returns that had been postponed to the third quarter and which had increased the
Group's net debt by close to 23 million euros in the second quarter. The Group's
net debt was 164.0 million euros (192.1 million euros at the end of June 2007).
The solvency ratio was 19.4% (22.0%) and gearing was 0.7 (0.6). The cash flow
received by the Group from sold accounts receivable amounted to 207.4 million
euros at the end of September (190.9 million euros at the end of June 2007).
At the end of September, Elcoteq had unused but immediately available credit
limits totaling 296.1 million euros (295.8 million euros at the end of June
2007), which included a syndicated loan with a committed credit facility of 230
million euros. Commercial papers issued by the Group had a total nominal value
of 5.0 million euros on September 30, 2007 (19.0 million euros at the end of
June 2007).
January - September
Net sales between January and September declined slightly on the same period
last year, standing at 2,980.5 million euros (3,179.7). Operating income was
-71.5 million euros (37.0). Operating income includes restructuring costs of
34.9 million euros, and therefore operating income excluding restructuring costs
was -36.5 million euros. Income before taxes was -91.6 million euros (20.0).
Earnings per share were -2.30 euros (0.40).
Gross capital expenditures on fixed assets between January and September
amounted to 39.4 million euros (84.6), or 1.3% of net sales. Depreciation was
60.3 million euros (60.7).
Personnel
At the end of September, Elcoteq employed 24,986 people (24,814): 359 (768) in
Finland and 24,627 (24,046) elsewhere. The geographical distribution of the
workforce was as follows: Europe 11,217 (12,264), Asia-Pacific 8,378 (7,696) and
the Americas 5,391 (4,854). The average number of Elcoteq employees on the
company's direct payroll between January and September was 19,359 (16,415).
Business Areas
Elcoteq has two business areas: Terminal Products and Communications Networks.
In the third quarter, Terminal Products contributed 80% (83%) and Communications
Networks 20% (17%) of the Group's net sales.
Balancing the company's customer portfolio has proceeded. In the third quarter,
the 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 Terminal Products business area between July and September
amounted to 842.9 million euros (967.9), down about 13% on the corresponding
period of the previous year, but approximately 12% higher than in the second
quarter of 2007. The segment's operating income was 6.0 million euros (18.6),
representing 0.7% of its net sales. Operating income excluding restructuring
costs was 8.1 million euros.
Net sales of the Communications Networks business area between July and
September were 216.8 million euros (201.2), an increase of about 8% on the same
period last year, but on par with the second quarter of 2007. The segment's
operating income was 2.4 million euros (8.8), or 1.1% of its net sales.
Operating income excluding restructuring costs was 2.1 million euros.
Geographical Areas
Elcoteq has three geographical areas: Europe, Asia-Pacific and the Americas.
Elcoteq's third-quarter net sales were derived from these areas as follows:
Europe 50% (57%), Asia-Pacific 30% (26%) and the Americas 20% (17%).
Europe's net sales declined by roughly 20% compared to the corresponding period
of last year and totaled 530.2 million euros (659.4). Asia-Pacific's net sales
showed slight growth, amounting to 313.7 million euros (307.2). Net sales in the
Americas were also slightly up on the year-ago figure, having risen to 215.7
million euros (202.4).
Compared to the second quarter, Europe's net sales increased by about 10% and
Asia-Pacific's by about 15%. Net sales in the Americas remained at the same
level as in the second quarter. Net sales growth in Europe was primarily
attributable to the increase in seasonal deliveries by Terminal Products. The
increase in Asia-Pacific's net sales was due to growth in the production volumes
of both Terminal Products and Communications Networks.
Progress with the Action Plan
Elcoteq launched an action plan early in the year to improve cost-effectiveness,
profitability and competitiveness, and it proceeded as planned. The action plan
focuses particularly on the company's operations in Europe and the Americas with
a view to achieving annual savings of about 20 million euros. The estimated
one-time restructuring costs related to the action plan total approximately 35
million euros, of which 34.9 million euros were recognized in the January -
September accounts. Measures geared towards upgrading production efficiency have
continued in the entire service network.
As part of the action plan, production at the Lohja plant, in Finland, ceased at
the end of June, with production being transferred to other plants. In addition,
production at the Juarez plant was wound up at the end of the third quarter, and
production was transferred to the Monterrey plant in Mexico and to China.
Decision on New Actions
Elcoteq has today announced a new action plan that has three focuses: adoption
of a customer-oriented organization model, turning around loss-making operations
into profit or downsizing them and additional savings in operations.
The new action plan will lead to one-time costs that the company will seek to
recognize in the last quarter of 2007. The company will release information on
the specifics of the program during the final quarter.
Shares and Shareholders
At the end of September, the company had 32,602,919 shares divided into
22,025,919 series A shares and 10,577,000 series K shares. All the series K
shares are owned by the company's three principal owners.
According to the Shareholder Register, Elcoteq had 10,709 shareholders on
September 30, 2007. There were a total of 7,823,803 nominee-registered and
foreign-registered shares, or 24.0% of the share capital and 6.12% of the votes
outstanding.
Events after the end of the Review Period
Kiinteistö Oy Piiharju, an Elcoteq SE Group company, sold its manufacturing
facility in Gunnarla in Lohja, Finland, to Sponda Kiinteistörahasto. The
contract was signed on October 12, 2007. The transaction price is 6.3 million
euros. The transaction will be carried out as a sale of real estate, with
ownership being transferred to Sponda by October 31, 2007, at the latest.
In October, Elcoteq announced that it had partnered up with the US company
Telsima Corporation as well as started the box-build manufacture of WiMaX
systems at the Bangalore plant in India.
Elcoteq's Board of Directors has approved in its meeting on October 23 an
incentive plan for the motivation and commitment of the company's key personnel
by means of a share subscription plan. The potential reward from the plan is
based on reaching the targets set by the Board of Directors for the Group's
consolidated income before taxes for the full year 2008. Based on the achieved
targets the company would issue a maximum of 1,500,000 new series A shares of
which 50% would be issued during March 2009 and the remaining 50% during
November 2009.
IEMS Strategy
Negotiations on partnerships and M&A arrangements are further ongoing with other
parties in order to implement the company's IEMS strategy (IEMS = Integrated
Electronics Manufacturing Services). The company intends to implement the IEMS
strategy measures by the end of 2008.
The main thrust of the IEMS strategy is to further upgrade the company's
electronics manufacturing and product development services by introducing
mechanics into the mix. As competition tightens and product lifecycles shorten,
the rising trend is that customers need to partner up with companies capable of
offering broader service portfolios globally. This is particularly true in
Terminal Products. Partners are expected to take on a larger role in the
management of complex product structures and in the entire product supply chain.
There are a limited number of players offering such extensive service
portfolios.
Short-term Risks and Uncertainties
The most important short-term challenges in Elcoteq's business operations
concern the company's ability to further improve its cost structure and
profitability. Meeting these challenges hinges on the company's provision of
services that satisfy customer demand and needs as rapidly as possible.
Prospects
Elcoteq forecasts that its full-year net sales will fall slightly below the
previous year and that its operating income excluding restructuring costs will
be negative.
The new action plan will lead to one-time costs that the company will seek to
recognize in the last quarter of 2007. The company will release information on
the specifics of the program during the final quarter. The company believes that
the cost-savings and higher operational efficiency achieved from the new action
plan will enable it to reach operating income level of about two percent in
2008.
Espoo
October 23, 2007
Board of Directors
Further information:
Jouni Hartikainen, President and CEO, tel. +358 10 413 11
Mikko Puolakka, CFO, tel. +358 10 413 1287, mobile +41 79 618 0302
Tuula Hatakka, SVP, Treasury, Communications and Investor Relations, 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 for the media and analysts at 2.30 pm (EET) on Wednesday, October 24, in
the Akseli-Gallen Kallela Room of Hotel Kämp (address: Pohjoisesplanadi 29,
Helsinki, Finland).
The press conference can also be followed as a live webcast or later as a
recording via Elcoteq's website www.elcoteq.com.
To participate by phone, please call 5 - 10 minutes before the start of the
press conference on +44 20 7162 0025 (Europe) or +1 334 323 6201 (the USA). The
code is Elcoteq.
Elcoteq will publish its 2007 financial statements bulletin on Wednesday,
February 6, 2008.
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 | Q3/ | Q3/ | Chan- | 1-9/ | 1-9/ | Chan- | 1-12/ |
| STATEMEN | 200 | 200 | ge, % | 20 | 200 | ge, % | 20 |
| T, MEUR | 7 | 6 | | 07 | 6 | | 06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET | 1,059.7 | 1,169.1 | -9.4 | 2,980.5 | 3,179.7 | -6.3 | 4,284.3 |
| SALES | | | | | | | |
--------------------------------------------------------------------------------
| Change | | | | | | | |
| in work | | | | | | | |
| in | | | | | | | |
| progress | | | | | | | |
--------------------------------------------------------------------------------
| and | 23.8 | 19.4 | 23.0 | 24.2 | 25.4 | -4.6 | 17.3 |
| finished | | | | | | | |
| goods | | | | | | | |
--------------------------------------------------------------------------------
| Other | 2.1 | 1.0 | 117.9 | 4.1 | 3.7 | 11.0 | 7.0 |
| operatin | | | | | | | |
| g income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operatin | -1,063. | -1,151. | -7.6 | -2,985. | -3,111.1 | -4.1 | -4,182.0 |
| g | 5 | 0 | | 0 | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Restruct | -1.8 | - | | -34.9 | - | | - |
| uring | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deprecia | -20.4 | -21.8 | -6.6 | -60.3 | -60.7 | -0.6 | -82.7 |
| tion and | | | | | | | |
| writedow | | | | | | | |
| ns | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATIN | -0.1 | 16.6 | | -71.5 | 37.0 | | 43.9 |
| G INCOME | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 0.0 | 1.4 | | -2.4 | 1.2 | | 1.0 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financia | -7.3 | -6.2 | 17.5 | -19.8 | -16.3 | 21.4 | -23.7 |
| l income | | | | | | | |
| and | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.0 | -0.2 | -80.4 | -0.4 | -0.7 | -47.4 | -1.0 |
| profits | | | | | | | |
| and | | | | | | | |
| losses | | | | | | | |
| of | | | | | | | |
| associat | | | | | | | |
| es | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME | -7.5 | 10.1 | | -91.6 | 20.0 | | 19.2 |
| BEFORE | | | | | | | |
| TAXES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | 1.6 | -3.4 | | 19.2 | -6.2 | | -4.7 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| NET | -5.9 | 6.7 | | -72.4 | 13.8 | | 14.6 |
| INCOME | | | | | | | |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUT | | | | | | | |
| ABLE TO: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | -6.3 | 5.9 | | -73.8 | 12.5 | | 12.1 |
| holders | | | | | | | |
| of the | | | | | | | |
| parent | | | | | | | |
| company | | | | | | | |
| *) | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0.4 | 0.8 | -42.1 | 1.5 | 1.4 | 8.6 | 2.5 |
| interest | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| | -5.9 | 6.7 | | -72.4 | 13.8 | | 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 positive tax figures in 2007 are due mainly to tax assets recognized on |
| losses recorded by the Group companies. |
--------------------------------------------------------------------------------
| *) The Group´s reported net income for the period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 2 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET, MEUR | Sept. 30, 2007 | Dec. 31, | Change, % |
| | | 2006 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 35.0 | 45.4 | -22.8 |
--------------------------------------------------------------------------------
| Tangible assets | 210.5 | 245.0 | -14.1 |
--------------------------------------------------------------------------------
| Investments | 2.4 | 13.7 | -82.4 |
--------------------------------------------------------------------------------
| Long-term receivables | 37.6 | 15.3 | 145.2 |
--------------------------------------------------------------------------------
| Non-current assets, total | 285.5 | 319.4 | -10.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 395.7 | 359.0 | 10.2 |
--------------------------------------------------------------------------------
| Current receivables | 435.3 | 402.9 | 8.0 |
--------------------------------------------------------------------------------
| Cash and equivalents | 65.8 | 82.3 | -20.0 |
--------------------------------------------------------------------------------
| Assets classified as held | 7.9 | - | |
| for sale *) | | | |
--------------------------------------------------------------------------------
| Current assets, total | 904.7 | 844.2 | 7.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, TOTAL | 1,190.2 | 1,163.6 | 2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) 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 | 13.0 | 12.6 | 3.4 |
--------------------------------------------------------------------------------
| Other shareholders' equity | 206.1 | 281.0 | -26.7 |
--------------------------------------------------------------------------------
| Equity attributable to | 219.2 | 293.7 | -25.4 |
| equity holders of | | | |
| the | | | |
| parent company, total | | | |
--------------------------------------------------------------------------------
| Minority interests | 11.0 | 9.6 | 14.1 |
--------------------------------------------------------------------------------
| Total equity | 230.2 | 303.3 | -24.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Long-term loans | 179.6 | 179.7 | 0.0 |
--------------------------------------------------------------------------------
| Other long-term debt | 5.0 | 5.2 | -3.3 |
--------------------------------------------------------------------------------
| Long-term liabilities, | 184.6 | 184.8 | -0.1 |
| total | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current loans | 49.8 | 30.6 | 63.0 |
--------------------------------------------------------------------------------
| Other current liabilities | 718.0 | 643.1 | 11.7 |
--------------------------------------------------------------------------------
| Provisions | 7.5 | 1.8 | 315.5 |
--------------------------------------------------------------------------------
| Current liabilities, total | 775.4 | 675.5 | 14.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| AND LIABILITIES, TOTAL | 1,190.2 | 1,163.6 | 2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 3 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW | 1-9/ | 1-9/ | Change, % | 1-12/ |
| STATEMENT, MEUR | 20 | 2006 | | 20 |
| | 07 | | | 06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before change in | 6.5 | 90.4 | | 114.2 |
| working capital | | | | |
--------------------------------------------------------------------------------
| Change in working capital *) | 9.6 | -46.8 | | -16.1 |
--------------------------------------------------------------------------------
| Financial items and taxes | -13.6 | -21.6 | -37.0 | -33.2 |
--------------------------------------------------------------------------------
| Cash flow from operating | 2.5 | 21.9 | | 65.0 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchases of non-current | -40.9 | -90.7 | -54.9 | -108.9 |
| assets | | | | |
--------------------------------------------------------------------------------
| Disposals of non-current | 5.4 | 6.8 | -20.6 | 23.2 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before financing | -33.0 | -62.0 | -46.8 | -20.8 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proceeds from share issue | 6.7 | 2.4 | 179.2 | 2.9 |
--------------------------------------------------------------------------------
| Change in current debt **) | 21.1 | 53.4 | -60.5 | -7.5 |
--------------------------------------------------------------------------------
| Issuance of long-term debt | 0.0 | 29.8 | | 29.8 |
--------------------------------------------------------------------------------
| Repayment of long-term debt | -0.4 | -0.3 | 33.3 | -0.5 |
--------------------------------------------------------------------------------
| Dividends paid | -8.9 | -20.6 | -56.8 | -20.6 |
--------------------------------------------------------------------------------
| Cash flow from financing | 18.5 | 64.8 | | 4.2 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and | -14.4 | 2.8 | | -16.5 |
| equivalents | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents on | 82.3 | 101.4 | -18.8 | 101.4 |
| January 1 | | | | |
--------------------------------------------------------------------------------
| Effect of exchange rate | -2.1 | -1.7 | 23.5 | -2.5 |
| changes on cash held | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and equivalents at the | 65.8 | 102.4 | -35.7 | 82.3 |
| end of the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The change in working capital includes the change in sold accounts |
| receivable. |
--------------------------------------------------------------------------------
| The impact of this change is to improve cash flow by 19.7 million euros |
| during the reporting period 1-9/2007 and by 34.3 million euros during |
| 1-9/2006. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| **)The change in current debt during the reporting period 1-9/2007 includes |
| the change in issuance of commercial papers with a nominal value of 5 |
| million euros. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 4 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY, MEUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Attributable to equity holders of | Minority | Tota |
| | | the parent | | l |
--------------------------------------------------------------------------------
| | | | | | | | inte | equi |
| | | | | | | | -res | -ty |
| | | | | | | | ts | |
--------------------------------------------------------------------------------
| | Share | Ad-di | Other | Transla | Re-tai- | | | |
| | | -tio- | | -tion | ned | | | |
| | | nal | | | | | | |
--------------------------------------------------------------------------------
| | ca-pi | paid- | re-ser | dif-fer | ear-nin | To-t | | |
| | tal | in | -ves | -ren-ce | gs | al | | |
| | | ca-pi | | s | | | | |
| | | tal | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 12.6 | 218.7 | 8.4 | -1.9 | 55.8 | 293. | 9.6 | 303. |
| Jan. 1, | | | | | | 7 | | 3 |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue of | 0.4 | 6.3 | | | | 6.7 | 2.6 | 9.3 |
| share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 1.6 | | 1.6 | | 1.6 |
| hedge of | | | | | | | | |
| subsidiari | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | -2.0 | | | -2.0 | | -2.0 |
| hedge *) | | | | | | | | |
--------------------------------------------------------------------------------
| Translatio | | | | -0.7 | | -0.7 | -0.1 | -0.8 |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | 0.2 | 0.2 | | 0.2 |
| d | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -6.3 | -6.3 | -2.6 | -8.9 |
--------------------------------------------------------------------------------
| Net income | | | | | -73.8 | -73. | 1.5 | -72. |
| | | | | | | 8 | | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 13.0 | 225.0 | 6.3 | -1.0 | -24.2 | 219. | 11.0 | 230. |
| Sept. 30, | | | | | | 2 | | 2 |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 12.4 | 216.0 | 8.4 | -2.9 | 63.1 | 297. | 6.9 | 303. |
| Jan. 1, | | | | | | 0 | | 9 |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Issue of | 0.1 | 2.3 | | | | 2.4 | | 2.4 |
| share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 0.9 | | 0.9 | | 0.9 |
| hedge of | | | | | | | | |
| subsidiari | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Translatio | | | | -0.7 | | -0.7 | -0.3 | -1.0 |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | 1.0 | 1.0 | | 1.0 |
| d | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -20.6 | -20. | | -20. |
| | | | | | | 6 | | 6 |
--------------------------------------------------------------------------------
| Net income | | | | | 12.5 | 12.5 | 1.4 | 13.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 12.6 | 218.3 | 8.4 | -2.7 | 55.9 | 292. | 7.9 | 300. |
| Sept. 30, | | | | | | 5 | | 4 |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The Group has applied hedge accounting to derivative instruments related |
| to purchases from June 30, 2007. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FORMULAS FOR THE CALCULATION OF FINANCIAL RATIOS | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 parent / |
--------------------------------------------------------------------------------
| | Adjusted average number of shares outstanding |
| | during the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share | Net income attributable to equity holders of |
| (EPS) = | 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 | Equity attributable to equity holders of the |
| share = | parent company / |
--------------------------------------------------------------------------------
| | Adjusted number of shares outstanding at the |
| | end of the period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 6 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-9/ | 1-9/ | Change, % | 1-12/ |
| | 2007 | 2006 | | 200 |
| | | | | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel on average during | 19,359 | 16,415 | 17.9 | 16,651 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross capital expenditures, | 39.4 | 84.6 | -53.4 | 116.9 |
| MEUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (ROE), % | -27.1 | 4.6 | | 4.8 |
--------------------------------------------------------------------------------
| Return on investment | -14.2 | 7.2 | | 9.1 |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| From 12 preceding months: | | | | |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | -27.0 | 9.9 | | 4.8 |
--------------------------------------------------------------------------------
| Return on investment | -12.0 | 12.1 | | 9.1 |
| (ROI/ROCE), % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), | -2.30 | 0.40 | | 0.38 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share | -2.30 | 0.38 | | 0.37 |
| (EPS), EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current ratio | 1.2 | 1.2 | | 1.2 |
--------------------------------------------------------------------------------
| Solvency, % | 19.4 | 22.0 | | 26.1 |
--------------------------------------------------------------------------------
| Gearing | 0.7 | 0.6 | | 0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per | 6.72 | 9.29 | -27.7 | 9.31 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing | 229.8 | 272.3 | -15.6 | 210.3 |
| liabilities, MEUR | | | | |
--------------------------------------------------------------------------------
| Interest-bearing net debt, | 164.0 | 169.9 | -3.5 | 128.0 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Non-interest-bearing | 730.1 | 794.9 | -8.2 | 650.0 |
| liabilities, MEUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| WRITEDOWNS MADE TO THE NON-CURRENT ASSETS, MEUR | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Writedowns made to the non-current assets | |
--------------------------------------------------------------------------------
| Intangible assets | 4.2 |
--------------------------------------------------------------------------------
| Tangible assets | 3.2 |
--------------------------------------------------------------------------------
| Investments | 10.9 |
--------------------------------------------------------------------------------
| Writedowns made to the non-current assets, total | 18.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Writedowns made to the non-current assets have been entered as restructuring |
| costs in the income statement. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX 8 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSINESS AREAS, MEUR | 1-9/2007 | 1-9/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| Net Sales | | | |
--------------------------------------------------------------------------------
| Terminal Products | 2,362.1 | 2,613.5 | 3,512.1 |
--------------------------------------------------------------------------------
| Communications Networks | 618.4 | 566.2 | 772.3 |
--------------------------------------------------------------------------------
| Total | 2,980.5 | 3,179.7 | 4,284.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment´s operating income | | | |
--------------------------------------------------------------------------------
| Terminal Products | -42.3 | 55.2 | 68.4 |
--------------------------------------------------------------------------------
| Communications Networks | -0.1 | 16.6 | 22.4 |
--------------------------------------------------------------------------------
| Group´s non-allocated | -29.0 | -34.7 | -46.8 |
| expenses/income | | | |
--------------------------------------------------------------------------------
| Total | -71.5 | 37.0 | 43.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 34.9 million euros restructuring costs recognized in the first three |
| quarters of 2007, 33.2 million euros have been entered against Terminal |
| Products' operating income, 1.4 million euros against Communications |
| Networks' operating income and 0.3 million euros under Group non-allocated |
| expenses. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elcoteq´s share of associated company results in the first three quarters of |
| 2007 totaled -0.4 million euros (-0.7). 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 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Sept. | Sept. 30, | Change, | Dec. 31, |
| | 30, | 2006 | % | 2006 |
| | 2007 | | | |
--------------------------------------------------------------------------------
| ON BEHALF OF OTHERS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LEASING COMMITMENTS | | | | |
--------------------------------------------------------------------------------
| Operating leases, production | | | | |
| machinery | | | | |
--------------------------------------------------------------------------------
| and equipment (excl. VAT) | 30.0 | 54.9 | -45.4 | 48.2 |
--------------------------------------------------------------------------------
| Rental commitments, | | | | |
--------------------------------------------------------------------------------
| real-estate (excl. VAT) | 26.0 | 29.3 | -11.3 | 27.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE CONTRACTS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| transaction risk | | | | |
--------------------------------------------------------------------------------
| no hedge accounting applied | | | | |
--------------------------------------------------------------------------------
| Nominal value | 252.1 | 282.7 | -10.8 | 275.4 |
--------------------------------------------------------------------------------
| Fair value | -4.0 | -1.0 | 300.0 | -5.1 |
--------------------------------------------------------------------------------
| Currency derivative contracts, | | | | |
| transaction risk | | | | |
--------------------------------------------------------------------------------
| hedge accounting applied *) | | | | |
--------------------------------------------------------------------------------
| Nominal value | 242.5 | - | | - |
--------------------------------------------------------------------------------
| Fair value | -2.0 | - | | - |
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| translation risk | | | | |
--------------------------------------------------------------------------------
| Nominal value | 34.1 | 28.4 | 20.1 | 35.5 |
--------------------------------------------------------------------------------
| Fair value | 0.5 | -0.0 | | 0.3 |
--------------------------------------------------------------------------------
| Currency forward contracts, | | | | |
| financial risk | | | | |
--------------------------------------------------------------------------------
| Nominal value | 124.9 | 148.3 | -15.8 | 131.1 |
--------------------------------------------------------------------------------
| Fair value | 0.0 | -0.2 | | -0.0 |
--------------------------------------------------------------------------------
| Interest rate and foreign | | | | |
| exchange | | | | |
| swap contracts | | | | |
--------------------------------------------------------------------------------
| Nominal value | 4.0 | 4.0 | 0.0 | 4.0 |
--------------------------------------------------------------------------------
| Fair value | -0.1 | 0.0 | | 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. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The Group has applied hedge accounting to derivative instruments related |
| to purchases from June 30, 2007. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER COMMITMENTS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group is engaged in some legal cases which are not expected to have a |
| significant impact on its profits, and therefore no provision has been made. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| APPENDIX | | | | | | | |
| 10 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| QUARTERL | | | | | | | |
| Y | | | | | | | |
| FIGURES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| STATEMEN | 20 | 20 | 20 | 20 | 200 | 2006 | 2006 |
| T, MEUR | 07 | 07 | 07 | 06 | 6 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET | 1,059. | 968.3 | 952.5 | 1,104. | 1,169.1 | 1,029.6 | 981.1 |
| SALES | 7 | | | 6 | | | |
--------------------------------------------------------------------------------
| Change | | | | | | | |
| in work | | | | | | | |
| in | | | | | | | |
| progress | | | | | | | |
--------------------------------------------------------------------------------
| and | 23.8 | -0.9 | 1.3 | -8.1 | 19.4 | -6.5 | 12.6 |
| finished | | | | | | | |
| goods | | | | | | | |
--------------------------------------------------------------------------------
| Other | 2.1 | 1.0 | 1.0 | 3.2 | 1.0 | 1.1 | 1.7 |
| operatin | | | | | | | |
| g income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operatin | -1,063 | -964.5 | -957.0 | -1,070 | -1,151. | -991.9 | -968.2 |
| g | .5 | | | .9 | 0 | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Restruct | -1.8 | -3.1 | -30.1 | - | - | - | - |
| uring | | | | | | | |
| costs | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deprecia | -20.4 | -19.9 | -20.1 | -22.0 | -21.8 | -20.1 | -18.9 |
| tion and | | | | | | | |
| writedow | | | | | | | |
| ns | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATIN | -0.1 | -19.0 | -52.4 | 6.9 | 16.6 | 12.2 | 8.3 |
| G INCOME | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 0.0 | -2.0 | -5.5 | 0.6 | 1.4 | 1.2 | 0.8 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financia | -7.3 | -6.1 | -6.4 | -7.4 | -6.2 | -5.0 | -5.1 |
| l income | | | | | | | |
| and | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | 0.0 | -0.1 | -0.3 | -0.3 | -0.2 | -0.2 | -0.3 |
| profits | | | | | | | |
| and | | | | | | | |
| losses | | | | | | | |
| of | | | | | | | |
| associat | | | | | | | |
| es | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME | -7.5 | -25.1 | -59.0 | -0.8 | 10.1 | 7.0 | 2.9 |
| BEFORE | | | | | | | |
| TAXES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | 1.6 | 5.3 | 12.4 | 1.6 | -3.4 | -2.0 | -0.8 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| NET | -5.9 | -19.8 | -46.6 | 0.8 | 6.7 | 5.0 | 2.1 |
| INCOME | | | | | | | |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ATTRIBUT | | | | | | | |
| ABLE TO: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | -6.3 | -20.6 | -46.9 | -0.3 | 5.9 | 4.4 | 2.1 |
| holders | | | | | | | |
| of the | | | | | | | |
| parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0.4 | 0.7 | 0.3 | 1.1 | 0.8 | 0.6 | -0.0 |
| interest | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| | -5.9 | -19.8 | -46.6 | 0.8 | 6.7 | 5.0 | 2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| SHEET, | 20 | 20 | 20 | 20 | 200 | 2006 | 2006 |
| MEUR | 07 | 07 | 07 | 06 | 6 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-curr | | | | | | | |
| ent | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Intan | 35.0 | 36.9 | 38.8 | 45.4 | 47.8 | 49.4 | 48.2 |
| gible | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Tangible | 210.5 | 220.4 | 227.3 | 245.0 | 263.6 | 242.1 | 238.2 |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Invest | 2.4 | 2.5 | 2.6 | 13.7 | 14.0 | 14.0 | 14.0 |
| ments | | | | | | | |
--------------------------------------------------------------------------------
| Long-ter | 37.6 | 34.8 | 28.6 | 15.3 | 14.2 | 11.2 | 10.6 |
| m | | | | | | | |
| Recei | | | | | | | |
| vables | | | | | | | |
--------------------------------------------------------------------------------
| Non-curr | 285.5 | 294.7 | 297.4 | 319.4 | 339.6 | 316.7 | 311.0 |
| ent | | | | | | | |
| assets, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Inven | 395.7 | 365.0 | 346.4 | 359.0 | 407.4 | 366.1 | 339.6 |
| tories | | | | | | | |
--------------------------------------------------------------------------------
| Current | 435.3 | 420.3 | 390.1 | 402.9 | 518.1 | 447.9 | 425.7 |
| recei | | | | | | | |
| vables | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 65.8 | 44.4 | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 |
| and | | | | | | | |
| equi | | | | | | | |
| valents | | | | | | | |
--------------------------------------------------------------------------------
| Assets | 7.9 | 7.6 | 6.7 | - | - | - | - |
| classi | | | | | | | |
| fied as | | | | | | | |
| held | | | | | | | |
| for | | | | | | | |
| sale | | | | | | | |
--------------------------------------------------------------------------------
| Current | 904.7 | 837.3 | 818.6 | 844.2 | 1,028.0 | 854.9 | 908.9 |
| assets, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS, | 1,190. | 1,132. | 1,116. | 1,163. | 1,367.6 | 1,171.7 | 1,219.9 |
| TOTAL | 2 | 0 | 0 | 6 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | |
| AND LIABILITIES | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | | | |
| the parent company | | | |
--------------------------------------------------------------------------------
| Share | 13.0 | 13.0 | 12.6 | 12.6 | 12.6 | 12.6 | 12.5 |
| capit | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Other | 206.1 | 213.5 | 228.5 | 281.0 | 279.9 | 272.9 | 267.1 |
| share | | | | | | | |
| holde | | | | | | | |
| rs' | | | | | | | |
| equit | | | | | | | |
| y | | | | | | | |
--------------------------------------------------------------------------------
| Equit | | | | | | | |
| y | | | | | | | |
| attri | | | | | | | |
| bu | | | | | | | |
| table | | | | | | | |
| to | | | | | | | |
| equit | | | | | | | |
| y | | | | | | | |
| holde | | | | | | | |
| rs | | | | | | | |
--------------------------------------------------------------------------------
| of | 219.2 | 226.6 | 241.1 | 293.7 | 292.5 | 285.4 | 279.5 |
| the | | | | | | | |
| paren | | | | | | | |
| t | | | | | | | |
| compa | | | | | | | |
| ny, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
| Minor | 11.0 | 9.8 | 10.1 | 9.6 | 7.9 | 7.0 | 6.7 |
| ity | | | | | | | |
| inter | | | | | | | |
| ests | | | | | | | |
--------------------------------------------------------------------------------
| Total | 230.2 | 236.4 | 251.2 | 303.3 | 300.4 | 292.5 | 286.3 |
| equit | | | | | | | |
| y | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long- | | | | | | | |
| term | | | | | | | |
| liabi | | | | | | | |
| litie | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Long- | 179.6 | 179.4 | 179.6 | 179.7 | 179.9 | 179.9 | 180.0 |
| term | | | | | | | |
| loans | | | | | | | |
--------------------------------------------------------------------------------
| Other | 5.0 | 5.1 | 4.5 | 5.2 | 4.3 | 4.1 | 3.7 |
| long | | | | | | | |
| term | | | | | | | |
| debt | | | | | | | |
--------------------------------------------------------------------------------
| Long- | 184.6 | 184.5 | 184.1 | 184.8 | 184.3 | 184.0 | 183.7 |
| term | | | | | | | |
| liabi | | | | | | | |
| li | | | | | | | |
| ties, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Curre | | | | | | | |
| nt | | | | | | | |
| liabi | | | | | | | |
| litie | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Curre | 49.8 | 56.6 | 64.8 | 30.6 | 92.0 | 26.2 | 38.7 |
| nt | | | | | | | |
| loans | | | | | | | |
--------------------------------------------------------------------------------
| Other | 718.0 | 647.0 | 607.3 | 643.1 | 788.3 | 666.3 | 708.9 |
| curre | | | | | | | |
| nt | | | | | | | |
| liabi | | | | | | | |
| li | | | | | | | |
| ties | | | | | | | |
--------------------------------------------------------------------------------
| Provi | 7.5 | 7.5 | 8.5 | 1.8 | 2.5 | 2.7 | 2.5 |
| sions | | | | | | | |
--------------------------------------------------------------------------------
| Curre | 775.4 | 711.1 | 680.6 | 675.5 | 882.9 | 695.2 | 750.0 |
| nt | | | | | | | |
| liabi | | | | | | | |
| li | | | | | | | |
| ties, | | | | | | | |
| total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE | | | | | | | |
| - | | | | | | | |
| HOLDE | | | | | | | |
| RS' | | | | | | | |
| EQUIT | | | | | | | |
| Y | | | | | | | |
--------------------------------------------------------------------------------
| AND | 1,190. | 1,132. | 1,116. | 1,163. | 1,367. | 1,171.7 | 1,219.9 |
| LIABI | 2 | 0 | 0 | 6 | 6 | | |
| LI- | | | | | | | |
| TIES, | | | | | | | |
| TOTAL | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Perso | 19,433 | 19,714 | 19,065 | 17,431 | 16,930 | 16,581 | 15,748 |
| nnel | | | | | | | |
| on | | | | | | | |
| avera | | | | | | | |
| ge | | | | | | | |
| durin | | | | | | | |
| g the | | | | | | | |
| perio | | | | | | | |
| d | | | | | | | |
--------------------------------------------------------------------------------
| Gross | 14.8 | 13.4 | 11.2 | 32.3 | 38.5 | 30.1 | 16.0 |
| capit | | | | | | | |
| al | | | | | | | |
| expen | | | | | | | |
| ditur | | | | | | | |
| es, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ROI/R | -12.0 | -9.4 | -2.9 | 9.1 | 12.1 | 15.7 | 16.0 |
| OCE | | | | | | | |
| from | | | | | | | |
| 12 | | | | | | | |
| prece | | | | | | | |
| ding | | | | | | | |
| month | | | | | | | |
| s, % | | | | | | | |
--------------------------------------------------------------------------------
| Earni | -0.19 | -0.64 | -1.49 | -0.01 | 0.19 | 0.14 | 0.07 |
| ngs | | | | | | | |
| per | | | | | | | |
| share | | | | | | | |
| (EPS) | | | | | | | |
| , EUR | | | | | | | |
--------------------------------------------------------------------------------
| Solve | 19.4 | 20.9 | 22.5 | 26.1 | 22.0 | 25.0 | 23.5 |
| ncy, | | | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSO | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| LI-DA | 20 | 20 | 20 | 20 | 20 | 2006 | 2006 |
| TED | 07 | 07 | 07 | 06 | 06 | | |
| CASH | | | | | | | |
| FLOW | | | | | | | |
| STATE | | | | | | | |
| MENT, | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 13.1 | -2.3 | -4.3 | 23.8 | 36.8 | 28.4 | 25.2 |
| flow | | | | | | | |
| befor | | | | | | | |
| e | | | | | | | |
| chang | | | | | | | |
| e | | | | | | | |
| in | | | | | | | |
| worki | | | | | | | |
| ng | | | | | | | |
| capit | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Chang | 33.9 | -5.9 | -18.4 | 30.7 | 13.7 | -73.1 | 12.6 |
| e in | | | | | | | |
| worki | | | | | | | |
| ng | | | | | | | |
| capit | | | | | | | |
| al | | | | | | | |
--------------------------------------------------------------------------------
| Finan | -3.8 | -1.2 | -8.6 | -11.6 | -7.7 | -6.6 | -7.3 |
| cial | | | | | | | |
| items | | | | | | | |
| and | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 43.2 | -9.5 | -31.2 | 43.1 | 42.6 | -51.3 | 30.6 |
| flow | | | | | | | |
| from | | | | | | | |
| opera | | | | | | | |
| ting | | | | | | | |
| activ | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purch | -18.0 | -12.5 | -10.4 | -18.2 | -48.8 | -24.5 | -17.4 |
| ases | | | | | | | |
| of | | | | | | | |
| non-c | | | | | | | |
| urren | | | | | | | |
| t | | | | | | | |
| asset | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Dispo | 3.7 | 1.0 | 0.7 | 16.4 | 1.5 | 4.2 | 1.1 |
| sals | | | | | | | |
| of | | | | | | | |
| non-c | | | | | | | |
| urren | | | | | | | |
| t | | | | | | | |
| asset | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 28.9 | -21.0 | -40.9 | 41.2 | -4.7 | -71.5 | 14.2 |
| flow | | | | | | | |
| befor | | | | | | | |
| e | | | | | | | |
| finan | | | | | | | |
| cing | | | | | | | |
| activ | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proce | - | 6.7 | 0.0 | 0.5 | 0.5 | 1.4 | 0.5 |
| eds | | | | | | | |
| from | | | | | | | |
| share | | | | | | | |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Chang | -4.5 | -8.8 | 34.4 | -60.9 | 65.4 | -10.3 | -1.7 |
| e in | | | | | | | |
| curre | | | | | | | |
| nt | | | | | | | |
| debt | | | | | | | |
--------------------------------------------------------------------------------
| Issua | - | - | - | - | - | - | 29.8 |
| nce | | | | | | | |
| of | | | | | | | |
| long- | | | | | | | |
| term | | | | | | | |
| debt | | | | | | | |
--------------------------------------------------------------------------------
| Repay | - | -0.2 | -0.2 | -0.2 | -0.1 | -0.2 | - |
| ment | | | | | | | |
| of | | | | | | | |
| long- | | | | | | | |
| term | | | | | | | |
| debt | | | | | | | |
--------------------------------------------------------------------------------
| Divid | -1.5 | -7.4 | - | - | - | -20.6 | - |
| ends | | | | | | | |
| paid | | | | | | | |
--------------------------------------------------------------------------------
| Cash | -6.0 | -9.7 | 34.3 | -60.6 | 65.9 | -29.7 | 28.6 |
| flow | | | | | | | |
| from | | | | | | | |
| finan | | | | | | | |
| cing | | | | | | | |
| activ | | | | | | | |
| ities | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Chang | 23.0 | -30.8 | -6.6 | -19.3 | 61.1 | -101.1 | 42.8 |
| e in | | | | | | | |
| cash | | | | | | | |
| and | | | | | | | |
| equiv | | | | | | | |
| alent | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 44.4 | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 | 101.4 |
| and | | | | | | | |
| equiv | | | | | | | |
| alent | | | | | | | |
| s at | | | | | | | |
| the | | | | | | | |
| begin | | | | | | | |
| ning | | | | | | | |
| of | | | | | | | |
| the | | | | | | | |
| perio | | | | | | | |
| d | | | | | | | |
--------------------------------------------------------------------------------
| Effec | -1.6 | -0.2 | -0.3 | -0.8 | 0.4 | -1.4 | -0.7 |
| t of | | | | | | | |
| excha | | | | | | | |
| nge | | | | | | | |
| rate | | | | | | | |
| chang | | | | | | | |
| es | | | | | | | |
| on | | | | | | | |
| cash | | | | | | | |
| held | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 65.8 | 44.4 | 75.4 | 82.3 | 102.4 | 41.0 | 143.5 |
| and | | | | | | | |
| equiv | | | | | | | |
| alent | | | | | | | |
| s at | | | | | | | |
| the | | | | | | | |
| end | | | | | | | |
| of | | | | | | | |
| perio | | | | | | | |
| d | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BUSIN | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| ESS | 20 | 20 | 20 | 20 | 20 | 2006 | 2006 |
| AREAS | 07 | 07 | 07 | 06 | 06 | | |
| , | | | | | | | |
| MEUR | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | | |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Termi | 842.9 | 752.0 | 767.2 | 898.6 | 967.9 | 837.6 | 808.0 |
| nal | | | | | | | |
| Produ | | | | | | | |
| cts | | | | | | | |
--------------------------------------------------------------------------------
| Commu | 216.8 | 216.4 | 185.3 | 206.0 | 201.2 | 192.0 | 173.1 |
| ni | | | | | | | |
| catio | | | | | | | |
| ns | | | | | | | |
| Netwo | | | | | | | |
| rks | | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,059. | 968.3 | 952.5 | 1,104. | 1,169. | 1,029.6 | 981.1 |
| | 7 | | | 6 | 1 | | |
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--------------------------------------------------------------------------------
| Segme | | | | | | | |
| nt´s | | | | | | | |
| opera | | | | | | | |
| ting | | | | | | | |
| incom | | | | | | | |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Termi | 6.0 | -11.4 | -36.9 | 13.2 | 18.6 | 20.7 | 15.9 |
| nal | | | | | | | |
| Produ | | | | | | | |
| cts | | | | | | | |
--------------------------------------------------------------------------------
| Commu | 2.4 | 2.2 | -4.7 | 5.7 | 8.8 | 3.2 | 4.6 |
| ni | | | | | | | |
| catio | | | | | | | |
| ns | | | | | | | |
| Netwo | | | | | | | |
| rks | | | | | | | |
--------------------------------------------------------------------------------
| Group | -8.5 | -9.8 | -10.8 | -12.1 | -10.8 | -11.6 | -12.3 |
| ´s | | | | | | | |
| non | | | | | | | |
| alloc | | | | | | | |
| ated | | | | | | | |
| expen | | | | | | | |
| ses/ | | | | | | | |
| incom | | | | | | | |
| e | | | | | | | |
--------------------------------------------------------------------------------
| Total | -0.1 | -19.0 | -52.4 | 6.9 | 16.6 | 12.2 | 8.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 1.8 million euros restructuring costs recognized in the third | |
| quarter of 2007, 2.1 million euros have been entered against Terminal | |
| Products' operating income, -0.3 million euros against Communications | |
| Networks' operating income and 0.0 million euros under Group's | |
| non-allocated expenses. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 3.1 million euros restructuring costs recognized in the second | |
| quarter of 2007, 2.9 million euros have been entered against Terminal | |
| Products' operating income, -0.3 million euros against Communications | |
| Networks' operating income and -0.1 million euros under Group's | |
| non-allocated expenses. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Of the 30.1 million euros 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. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GEOGRAPHICA | Q3/ | Q2/ | Q1/ | Q4/ | Q3/ | Q2/ | Q1/ |
| L AREAS, | 20 | 2 | 20 | 200 | 200 | 200 | 20 |
| MEUR | 07 | 007 | 07 | 6 | 6 | 6 | 06 |
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| Net Sales | | | | | | | |
--------------------------------------------------------------------------------
| Europe | 530.2 | 481.0 | 507.6 | 635.8 | 659.4 | 599.7 | 530.5 |
--------------------------------------------------------------------------------
| Asia- | 313.7 | 272.1 | 231.2 | 260.3 | 307.2 | 272.8 | 253.8 |
| Pacific | | | | | | | |
--------------------------------------------------------------------------------
| Americas | 215.7 | 215.2 | 213.6 | 208.5 | 202.4 | 157.1 | 196.8 |
--------------------------------------------------------------------------------
| Total | 1,059. | 968.3 | 952.5 | 1,104.6 | 1,169.1 | 1,029.6 | 981.1 |
| | 7 | | | | | | |
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