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2008-02-29 13:14:27 CET 2008-02-29 13:15:19 CET REGULATED INFORMATION Nurminen Logistics Oyj - Financial Statement ReleaseCorrection: NURMINEN LOGISTICS PLC'S FINANCIAL STATEMENTS BULLETIN 1 January - 31 DecemberNurminen Logistics Plc Stock Exchange release 29 February 2008 This is a correction for release sent at. 9.00 on 29 February 2008. The Outlook of the tables has been corrected. Please find, the whole English language version below. NURMINEN LOGISTICS PLC'S FINANCIAL STATEMENTS BULLETIN 1 January - 31 December 2007 Until 31 December 2007, Nurminen Logistics Plc (the “Company”) was called Kasola Plc. The Company sold its old operations (the “Kasola operations”) in a transaction executed on 23 November 2007. Correspondingly, the Company received its current operations (the “Nurminen Logistics operations”) on 1 January 2008, when the old John Nurminen LLC was demerged. These arrangements were described in more detail in earlier stock exchange releases and the registration document and securities note published by Kasola Plc on 7 December 2007. The information presented in this financial statements bulletin conforms to the Company's official Financial Statements for 2007. This information thus relates to a period during which the Company was engaged in the Kasola operations sold on 30 November 2007. In order to provide a clearer picture of the Company's current operations, this bulletin also presents the financials of the Nurminen Logistics operations for 2007, separated from the old John Nurminen LLC's Financial Statements. Furthermore, a consolidated pro forma balance sheet of the Company and the Nurminen Logistics operations as at 31 December 2007 is provided for information purposes. It should also be noted that the views presented in this bulletin regarding the market situation and the Company's outlook apply to the Company's current Nurminen Logistics operations. This bulletin is divided into four sections: 1) The first section presents the financial information for 2007. 2) The second section deals with events after the balance sheet date and estimates the Company's future development. 3) The third section presents carve out financials for 2007 of the Company's current Nurminen Logistics operations. 4) The fourth section presents the consolidated pro forma balance sheet. 1. FINANCIAL INFORMATION 2007 (KASOLA PLC) OPERATIONS AND FINANCIAL RESULTS Kasola operations were divided into two business segments: safety products and plastic products. The Company has divested all of its operations by agreements signed at 23 November 2007. Group Net Sales were 10 298 thousand euros (2006: 11 079 thousand euros). Decline in net sales was due to the divestment of business operations during the financial year as well as the fire that took place in April 2007, which disturbed the operations. Group operating profit was 128 thousand euros (597). Decline in operating profit was due to the divestment of business operations during the financial year as well as the fire that took place in April 2007, which disturbed the operations. Furthermore operating profit was burdened by transaction costs amounting to 1 348 thousand euros. These transaction costs were related to the transaction described in the above mentioned registration document. The above described divestment of Company's business operations in November 2007 produced a sale profit in the amount of 1 604 thousand euros, which improved Company's operating profit. FINANCIAL POSITION The financial position of the Group was sound, the equity ratio standing at 91% (2006: 71%). CAPITAL EXPENDITURE The Group's capital expenditure totalled EUR 286,000 (280,000). PERSONNEL At the end of the reporting period, the Group employed a staff of 1 (88). Reduction in personnel is a result of divestment of Company's operations in November 2007. CONTINGENT LIABILITIES The Group had no contingent liabilities or mortgages at 31 December 2007. A year earlier, the contingent liabilities and mortgages were EUR 5,511,000. SEGMENT REPORTING Since all the operations carried on in 2007 have been discontinued, segment information is not presented. -------------------------------------------------------------------------------- | INCOME | 2007 | 2007 | 2007 | 2006 | 2006 | 2006 | | STATEMEN | | | | | | | | T | | | | | | | -------------------------------------------------------------------------------- | EUR | continu | discontinue | Total | continui | discontin | Total | | 1,000 | ing | d | | ng | ued | | | | operati | operations | | operatio | operation | | | | ons | | | ns | s | | -------------------------------------------------------------------------------- | TURNOVER | 0 | 10298 | 10298 | 0 | 11079 | 11079 | -------------------------------------------------------------------------------- | Other | 190 | 1604 | 1794 | 0 | 181 | 181 | | operatin | | | | | | | | g income | | | | | | | -------------------------------------------------------------------------------- | Change | 0 | 0 | 0 | 0 | 149 | 149 | | in | | | | | | | | invetori | | | | | | | | es of | | | | | | | | finished | | | | | | | | goods | | | | | | | | and work | | | | | | | | in | | | | | | | | progress | | | | | | | -------------------------------------------------------------------------------- | Producti | 0 | 0 | 0 | 0 | 64 | 64 | | on for | | | | | | | | own use | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | Material | 0 | -3956 | -3956 | 0 | -3838 | -3838 | | s and | | | | | | | | services | | | | | | | -------------------------------------------------------------------------------- | Employee | -123 | -4078 | -4201 | 0 | -4028 | -4028 | | benefits | | | | | | | | expenses | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | Deprecia | 0 | -644 | -644 | 0 | -697 | -697 | | tion | | | | | | | -------------------------------------------------------------------------------- | Other | -1443 | -1720 | -3163 | -60 | -2253 | -2313 | | operatin | | | | | | | | g costs | | | | | | | -------------------------------------------------------------------------------- | OPERATIN | -1376 | 1504 | 128 | -60 | 657 | 597 | | G PROFIT | | | | | | | -------------------------------------------------------------------------------- | Financia | 115 | 0 | 115 | 0 | 70 | 70 | | l income | | | | | | | -------------------------------------------------------------------------------- | Financia | -79 | -127 | -206 | 0 | -89 | -89 | | l | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | PROFIT | -1340 | 1377 | 37 | -60 | 638 | 578 | | BEFORE | | | | | | | | TAX | | | | | | | -------------------------------------------------------------------------------- | Income | 360 | -386 | -26 | 16 | -167 | -151 | | taxes | | | | | | | -------------------------------------------------------------------------------- | PROFIT | -980 | 991 | 11 | -44 | 471 | 427 | | FOR THE | | | | | | | | PERIOD | | | | | | | -------------------------------------------------------------------------------- | Attribut | 0 | 0 | 0 | 0 | 0 | 0 | | able to | | | | | | | -------------------------------------------------------------------------------- | Equity | -980 | 991 | 11 | -44 | 471 | 427 | | holders | | | | | | | | of the | | | | | | | | parent | | | | | | | -------------------------------------------------------------------------------- | Minority | 0 | 0 | 0 | 0 | 0 | 0 | | interest | | | | | | | | s | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME | 10-12 | 10-12 /2007 | 10-12 | 10-12 | 10-12 | 10-12 | | STATEMEN | /2007 | | /2007 | /2006 | /2006 | /2006 | | T | | | | | | | -------------------------------------------------------------------------------- | EUR | continu | discontinue | Total | continui | disconti | Total | | 1,000 | ing | d | | ng | nued | | | | operati | operations | | operatio | operatio | | | | ons | | | ns | ns | | -------------------------------------------------------------------------------- | TURNOVER | 0 | 2487 | 2487 | 0 | 3090 | 3090 | -------------------------------------------------------------------------------- | Other | 190 | 1218 | 1408 | 0 | 44 | 44 | | operatin | | | | | | | | g income | | | | | | | -------------------------------------------------------------------------------- | Change | 0 | -26 | -26 | 0 | -55 | -55 | | in | | | | | | | | invetori | | | | | | | | es of | | | | | | | | finished | | | | | | | | goods | | | | | | | | and work | | | | | | | | in | | | | | | | | progress | | | | | | | -------------------------------------------------------------------------------- | Producti | 0 | -18 | -18 | 0 | 19,5 | 19,5 | | on for | | | | | | | | own use | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | Material | 0 | -1129 | -1129 | 0 | -1009,5 | -1009,5 | | s and | | | | | | | | services | | | | | | | -------------------------------------------------------------------------------- | Employee | -123 | -1046 | -1169 | 0 | -1122,75 | -1122,75 | | benefits | | | | | | | | expenses | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | Deprecia | 0 | -116 | -116 | 0 | -175,5 | -175,5 | | tion | | | | | | | -------------------------------------------------------------------------------- | Other | -1170 | -62 | -1232 | -16 | -578 | -594 | | operatin | | | | | | | | g costs | | | | | | | -------------------------------------------------------------------------------- | OPERATIN | -1103 | 1308 | 205 | -16 | 223,75 | 207,75 | | G PROFIT | | | | | | | -------------------------------------------------------------------------------- | Financia | 32 | 0 | 32 | 0 | 20,25 | 20,25 | | l income | | | | | | | -------------------------------------------------------------------------------- | Financia | -79 | -54 | -133 | 0 | -21 | -21 | | l | | | | | | | | expenses | | | | | | | -------------------------------------------------------------------------------- | PROFIT | -1150 | 1254 | 104 | -16 | 223 | 207 | | BEFORE | | | | | | | | TAX | | | | | | | -------------------------------------------------------------------------------- | Income | 277 | -321 | -44 | 4 | -55 | -51 | | taxes | | | | | | | -------------------------------------------------------------------------------- | PROFIT | -873 | 933 | 60 | -12 | 168 | 156 | | FOR THE | | | | | | | | PERIOD | | | | | | | -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (EUR k) | 31.12.2007 | 31.12.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Non-current assets: | | | -------------------------------------------------------------------------------- | Tangible and intangible assets | | 0 | 6 307 -------------------------------------------------------------------------------- | Other financial assets | | 0 | 44 -------------------------------------------------------------------------------- | Deferred tax assets | | 0 | 327 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | 0 | -------------------------------------------------------------------------------- | Inventories | 0 | 2 022 | -------------------------------------------------------------------------------- | Trade and other receivables | | 2 931 | 1 489 -------------------------------------------------------------------------------- | Cash at bank and in hand | 7 071 | 2 976 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | 10 002 | 13 165 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Share capital | | 4 215 | 4 215 -------------------------------------------------------------------------------- | Share premium account | 86 | 86 -------------------------------------------------------------------------------- | Reserve fund | 2 374 | 2 374 -------------------------------------------------------------------------------- | Fair value reserve | | | 27 -------------------------------------------------------------------------------- | Retained earnings | | 2 429 | 2 686 | -------------------------------------------------------------------------------- | Minority interest | | 0| 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | | 0| 336 | -------------------------------------------------------------------------------- | Deferred tax liabilities | | 0| 291 | -------------------------------------------------------------------------------- | Pension obligations 0 | 179 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 0 | 1 427 | -------------------------------------------------------------------------------- | Trade and other payables | 899 | 1 544 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total 10 002 | 13 165 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 2007 | 2006 | -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT |01.01.-31.12.| 01.01.-31.12. | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATING ACTIVITIES | | | -------------------------------------------------------------------------------- | Operating profit | 129 | 597 | -------------------------------------------------------------------------------- | Adjustments to reconcile profit | -1 604 | | -------------------------------------------------------------------------------- | Depreciation and amortisation | | 644 | 697 | -------------------------------------------------------------------------------- | Financial income and expenses | | 76 | -22 | -------------------------------------------------------------------------------- | Taxes paid | | -230 | -102 | -------------------------------------------------------------------------------- | Changes in working capital | | -800 | 717 | -------------------------------------------------------------------------------- | Cash flow from operating activities | -1 785 | 1 887 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTING ACTIVITIES | | | -------------------------------------------------------------------------------- | Proceeds from divested operations, net of cash 4 930 | 0 | | -------------------------------------------------------------------------------- | Proceeds from sales of fixed assets| 3 204 | 0 | -------------------------------------------------------------------------------- | Investments in tangible and intangible assets | -286 | -387 | -------------------------------------------------------------------------------- | Cash flow from investing activities 6 244 | -387 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING ACTIVITIES | | | -------------------------------------------------------------------------------- | Changes in liabilities | -1 672 | -1 427 | -------------------------------------------------------------------------------- | Dividends paid | -297 | -297 | -------------------------------------------------------------------------------- | Other investments | 0 | -38 | -------------------------------------------------------------------------------- | Cash flow from financing activities | -1 969 | -1 762 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGE IN CASH AND CASH EQUIVALENTS | 4 094 | -262 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents at beginning of period | 2 976 | 3 238 | -------------------------------------------------------------------------------- | Cash and cash equivalents at end of period | 7 070 | 2 976 | -------------------------------------------------------------------------------- | CASH FLOW FROM DISCONTINUED OPERATIONS | | | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATING ACTIVITIES | -2 053 | 1 947 | -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTING ACTIVITIES | 7 848 | -387 | -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING ACTIVITIES | -1 672 | -1 762 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CHANGES IN EQUITY 1-12/06 | | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | | | -------------------------------------------------------------------------------- | | Share | Share | Reserve | Fair | Prior | Total | capital premium fund Value year's | | | account | | reserve | year's | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 4237 | 64 | 2374 | 19 | 2597 | 9 291 | | EQUITY | | | | | | | AT BEGINNING | | | | | | | | ------------------------------------------------------------------------------ | Purchase of treasury shares | | | | -38 | -38 | -------------------------------------------------------------------------------- | Recognised | | | | | | | | in share holders' | | | | | | | | equity | | | | 8 | | 8 | -------------------------------------------------------------------------------- | Profit for | | | | | 427 | 427 | | the period | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -297 | -297 | -------------------------------------------------------------------------------- | Redemption of minority | | | | | | | | interest | | | | | -4 | -4 | -------------------------------------------------------------------------------- | Cancellation of | -22 | 22 | | | | | | treasury shares | | | | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 4215 | 86 | 2374 | 27 | 2685 | 9387 | | EQUITY | | | | | | | | 31.12.2006 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CHANGES IN EQUITY 1-12/07 | | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | | | -------------------------------------------------------------------------------- | | Share | Share | Reserve | Fair | Prior | | capital premium fund Value year's | | | account | reserve | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 4215 | 86 | 2374 | 27 | 2685 | 9 387| | EQUITY | | | | | | AT BEGINNING | | | | | | | -------------------------------------------------------------------------------- | Purchase of treasury shares | | | | -2 | -2 | -------------------------------------------------------------------------------- | Recognised | | | | | | | | in share holders| | | | | | | | equity | | | | -27 | 31 | 4 | -------------------------------------------------------------------------------- | Profit for | | | | | 11 | 11 | | the period | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -297 | -297 | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 4215 | 86 | 2374 | 0 | 2 428 | 9 103 | | EQUITY | | | | | | | | 31.12.2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 31.12.2007 | 31.12.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROSS CAPITAL EXPENDITURE (EUR k) | 286 | 418 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PERSONNEL | 80 | 86 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ORDER BACKLOG (EUR k) | 0 | 1 291 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONTINGENT LIABILITIES (EUR k) | | | -------------------------------------------------------------------------------- | Mortgages given | 0 | 5 177 | -------------------------------------------------------------------------------- | Other contingent liabilities | 0 | 195 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHARE PRICE DEVELOPMENT | | | -------------------------------------------------------------------------------- | Share price at beginning of period 4,00 | 2,50 | -------------------------------------------------------------------------------- | Share price at end of period 5,10 | 4,00 | -------------------------------------------------------------------------------- | Highest for the period 5,75 | 4,33 | -------------------------------------------------------------------------------- | Lowest for the period 3,43 | 2,60 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY/SHARE EUR 3,67 | 3,79 | -------------------------------------------------------------------------------- | EARNINGS/SHARE (EPS) EUR | 0,005 | 0,17 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CHANGES IN EQUITY (EUR k ----------------------------------- | | | -------------------------------------------------------------------------------- | Shareholders' equity at beginning of period | 9 387 | 9 330 | -------------------------------------------------------------------------------- | Dividends distributed | -297 | -297 | -------------------------------------------------------------------------------- | Net income recognised directly in shareholders' equity 4 | 8 | -------------------------------------------------------------------------------- | Profit for the period | 9 | 389 | -------------------------------------------------------------------------------- | Redemption of minority interest | 0 | -43 | -------------------------------------------------------------------------------- | Shareholders' equity at end of period | 9 103 | 9 387 | -------------------------------------------------------------------------------- ACCOUNTING POLICIES In the comparative periods of the income statement, the profit/loss for the operations sold has not been presented in one row, since the operations sold cover the entire operations. This Financial Statements Bulletin has been prepared in accordance with the recognition and measurement principles of IFRS standards. However it has not been prepared in accordance with all requirements of IAS 34 standard (interim reports). This financial report should be read with Kasola Oyj's annual report 2006. The presented financials are unaudited 2. EVENTS AFTER THE BALANCE SHEET DATE AND BUSINESS ENVIRONMENT (NURMINEN LOGISTICS OPERATIONS) EVENTS AFTER THE BALANCE SHEET DATE On 1 January 2008, the Company's name changed to Nurminen Logistics Plc. On the same day, the old John Nurminen LLC demerged and the Company received the Nurminen Logistics operations, which it is currently running. SHORT-TERM RISKS AND UNCERTAINTIES The most significant business risks are associated with the potential slowdown of global economic growth, the economic trends in Finland as well as the pace of economic growth in Russia and the development of foreign trade of Russia. The Company is involved in the Finnish import logistics of Russian wood as part of Nurminen Cargo's operations. If realised, the continuous increases of Russian export tariffs will reduce or bring to an end the import of wood from Russia and have a negative impact on the Company's financial performance. The effect will not, however, be material to the Company. OUTLOOK Organic growth is expected to exceed 10% of turnover, and the company's operating margin is expected to improve compared to below presented 2007 carve-out financial information of Nurminen Logistics. On the long-term Company's goal is to increase its turnover annually by approximately 20% on average, including acquisitions, and reach a operating profit level of over 7%. The economies of Russia and other CIS countries seem to continue their strong growth in 2008, creating a good basis for the development of Nurminen Cargo's operations, in particular. Russian imports will continue to grow vigorously, as will Russia's internal logistics transport market. Nurminen Heavy is looking for growth particularly in the traffic of Russia and other CIS countries. The unit will acquire additional transport equipment in 2008 to respond to demand. Due to completed acquisitions and tendering processes, Nurminen Care's sales will increase clearly from 2007. BOARD OF DIRECTORS AND MANAGEMENT GROUP The Board of Directors elected at Kasola Plc's Extraordinary General Meeting (EGM) on 8 October 2007, which comprised Pekka Kainulainen, Teemu Malmi, Jari Bachmann, Markku Uotinen and Olli Pohjanvirta, continued as Nurminen Logistics Plc's Board of Directors until the EGM held on 14 January 2008. In the said EGM, the following persons were elected to serve on the Nurminen Logistics Plc Board of Directors: Olli Pohjanvirta, Juha Nurminen, Matti Lainema, Matti Packalén and Rolf Saxberg. On 14 January 2008, the Board elected Juha Nurminen as its Chairman. On 15 January 2008, the Board appointed Juha Nurminen to the Nomination and Compensation Committee. Matti Lainema was elected as the Chairman and Olli Pohjanvirta as a member of the Audit Committee. The Management Group of Nurminen Logistics for 2008 was announced in a stock exchange release on 22 November 2007. It comprises President and CEO Lasse Paitsola, SVP Kaj Kulp (M&A and investments), CFO Antti Sallila, SVP Petteri Pelkonen (Nurminen Heavy and Nurminen Care) and SVP Harri Vainikka (Nurminen Cargo). AUTHORISATIONS GIVEN TO THE BOARD The authorisation to grant share offering and special privileges On 8 October 2007, the extraordinary general meeting authorised the Company board to decide on a share offering of 10,000,000 shares, and on the basis of this authorisation the board may issue a maximum of 10,000,000 new shares as demerger consideration to John Nurminen shareholders, as a part of concluding the Transaction. The authorisation is effective for 18 months from the extraordinary general meeting's decision on the authorisation. The authorisation in question may be used solely to execute the aforementioned demerger consideration. A total of 9,999,989 shares of the authorisation will be used with the registration of the John Nurminen demerger. In addition to the previous, the Company's extraordinary general meeting held on 8 October 2007 authorised the Company board to decide on the issue of shares and special rights, so that authorisation was given for the board to release 20,000,000 new shares. The authorisation included the right to deviate from the shareholders' registration privilege, should a weighty financial reason exist for doing so. The authorisation may be used, e.g., for the financing of corporate and business trading or for other business arrangements and investments, for the expansion of the ownership structure, and/or for the creating incentives for, or encouraging commitment in, personnel. The authorisation is effective for 18 months from the extraordinary general meeting's decision on the authorisation. The authorisation gives the board the right to decide on share issue with or without payment which includes the granting of new shares and the distribution of shareholders' shares possibly in the possession of the Company. The authorisation for deciding on a share issue without consideration also includes the right to decide on the issue for the Company itself, so that the number of shares granted to the Company is no more than one tenth of all shares held by the Company. The board has not decided on using the authorisation. Authorisation to decide on acquiring treasury shares On 20 April 2007, the annual general meeting authorised the board to decide on the acquisition of treasury shares. The acquisition authorisation of treasury shares is in force until 30 April 2008, and the maximum of 200,000 shares may be acquired on this basis. AUDITORS The company's auditors are Idman & Vilén LLC, Authorised Public Accountants, with Matti Pettersson, Authorised Public Accountant, as its principal auditor, and LLC KPMG Ab, Authorised Public Accountants, with Lasse Holopainen, Authorised Public Accountant, as its principal auditor. SHARES AND SHAREHOLDERS The trading volume of Kasola LLCj's shares was 660,507 in 2007, which represented 30.3% of the total number of shares. The value of the turnover was EUR 3,324,000. The lowest price for the year was EUR 3.43/share and the highest EUR 5.70/share. The closing price for the year was EUR 5.10/share and the market value of the entire share capital (A share) EUR 11,114,000. At the year-end, there were 293 shareholders. One K share was entitled to 20 votes and one A share, listed on the OMX Nordic Exchange Helsinki, to one (1) vote. K shares were converted to A shares at the end of the year 2007. BOARD OF DIRECTORS' PROPOSAL FOR PROFIT DISTRIBUTION Based to the Financial Statements as at 31 December 2007, the parent company's distributable equity is EUR 4 888 735.25. The Board of Directors proposes that a dividend of EUR 0.12 per share be distributed, i.e. a total of EUR 1 526 294.28. After this, the parent company will have EUR 3 362 440.97 of retained earnings. The record date for the payment of the proposed dividend is 16 April 2008. The dividend payment date is 28 April 2008. All shares outstanding on the dividend payment record date, excluding treasury shares in the parent company's possession, are entitled to dividends for the year 2007. ANNUAL GENERAL MEETING 2008 The Company's Annual General Meeting for 2008 will be held on 11 April 2008 from 10 am at Pasilankatu 2, FI-00240 Helsinki. 3. NURMINEN LOGISTICS - SEPARATE FINANCIAL INFORMATION FOR BUSINESSES -------------------------------------------------------------------------------- | SEPARATE FINANCIAL INFORMATION FOR THE LOGISTICS BUSINESS TO BE | | TRANSFERRED TO NURMINEN LOGISTICS | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | | | | | IFRS | | | | | | 1 000 EUR | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | 1.1.-31.12.2007| | 1.1.-31.12.2006| | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TURNOVER | 81 693 | | 72 205 | | -------------------------------------------------------------------------------- | Other operating | 1 885 | | 657 | | | income | | | | | -------------------------------------------------------------------------------- | Materials and services | -41 471 | | -38 464 | | -------------------------------------------------------------------------------- | Employee benefits | -18 120 | | -16 475 | | | expenses | | | | | -------------------------------------------------------------------------------- | Depreciation and amortisation | -4 448 | | -2 853 | | -------------------------------------------------------------------------------- | Other operating costs | -15 012 | | -13 182 | | -------------------------------------------------------------------------------- | OPERATING PROFIT | 4 527 | | 1 888 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and expenses | -2 491 | | -846 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share of companies consolidated | | | using the equity method | 29 | | -170 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 2 065 | | 872 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income taxes | -384 | | -129 | | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | 1 681 | | 743 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | -------------------------------------------------------------------------------- | Equity holders of | 1 373 | | 470 | | | the parent | | | | | -------------------------------------------------------------------------------- | Minority interests | 308 | | 273 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SEPARATE FINANCIAL INFORMATION FOR THE LOGISTICS BUSINESS TO BE | | TRANSFERRED TO NURMINEN LOGISTICS | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, IFRS | | | -------------------------------------------------------------------------------- | 1 000 EUR | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | | | | | | | | | | -------------------------------------------------------------------------------- | | | 31.12.2007| | 31.12.2006| -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Property, plant | 48 041 | | 33 376 | | and equipment | | | | -------------------------------------------------------------------------------- | Goodwill | 10 744 | | 9 131 | -------------------------------------------------------------------------------- | Other intangible assets | 1 802 | | 2 625 | -------------------------------------------------------------------------------- | Companies consolidated | 717 | | 116 | | using the equity method | | | | -------------------------------------------------------------------------------- | Receivables | 0 | | 5 | -------------------------------------------------------------------------------- | Deferred | 337 | | 161 | tax assets | | | | -------------------------------------------------------------------------------- | | | 61 641 | | 45 414 | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Trade and other receivables | 14 606 | | 15 493 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 3 085 | | 55 | -------------------------------------------------------------------------------- | | | 17 691 | | 15 548 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | 79 332 | | 60 962 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET ASSETS AND LIABILITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net assets | 21 195 | | 13 077 | -------------------------------------------------------------------------------- | Minority interest | 1 010 | | 742 | -------------------------------------------------------------------------------- | | | 22 205 | | 13 819 | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 761 | | 840 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | 9 480 | | 1 389 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 12 792 | | 27 136 | -------------------------------------------------------------------------------- | | | 23 033 | | 29 365 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Trade and other payables | 31 241 | | 13 870 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 2 853 | | 3 908 | -------------------------------------------------------------------------------- | | | 34 094 | | 17 778 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 57 127 | | 47 143 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | TOTAL NET ASSETS AND | 79 332 | | 60 962 | | LIABILITIES | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | | 1.1.-31.12.2007 | 1.1.-31.12.2006 | | by segment | | IFRS | IFRS | | (1 000 EUR) | | | | -------------------------------------------------------------------------------- | Cargo | | 70 182 | 64 129 | -------------------------------------------------------------------------------- | Heavy | | 9 455 | 8 070 | -------------------------------------------------------------------------------- | Care | | 6 678 | 2 026 | -------------------------------------------------------------------------------- | Eliminations | | -4 622 | -2 020 | -------------------------------------------------------------------------------- | Total | | 81 693 | 72 205 | -------------------------------------------------------------------------------- | Turnover | | 1.1.-31.12.2007 | 1.1.-31.12.2006 | | by segment | | | | | (1 000 EUR) | | | | -------------------------------------------------------------------------------- | Cargo | | 2 819 | 809 | -------------------------------------------------------------------------------- | Heavy | | 927 | 678 | -------------------------------------------------------------------------------- | Care | | 781 | 402 | -------------------------------------------------------------------------------- | Other | | 0 | 0 | -------------------------------------------------------------------------------- | Total | | 4 527 | 1 889 | -------------------------------------------------------------------------------- The 2007 carve-out financial information of Nurminen Logistics operations have been prepared in accordance with the accounting principles described in the pages of F16-F24 (F18-F26 of the English translation) of the above mentioned registration document. The carve-out financial information presented has been prepared in accordance with the recognition and measurement principles of IFRS standards. MARKET REVIEW/BUSINESS ENVIRONMENT Nurminen Cargo enjoyed favourable market conditions for most of the year. Strong economic development continued, which was reflected in the improvement of Finnish foreign trade. Trade between Finland and Russia, in particular, grew vigorously, resulting in larger volumes in railway transports and cargo handling alike. The import of wood from Russia declined compared to 2006. Nurminen Heavy benefited from the boom in the mechanical engineering industry. Demand was robust in all main markets. For Nurminen Care, the most important market factor was the continuing consolidation of the ambulance operator market. The basic structure of the industry nevertheless remained fragmented. In other respects, no significant changes took place in the marketplace. TURNOVER AND FINANCIAL PERFORMANCE FOR 2007 The Nurminen Logistics operations continued on a steady growth path in 2007. Turnover was EUR 81.7 (2006: 72.2) million. Operating profit for 2007 totalled EUR 4.5 (1.9) million and net profit EUR 1.7 (0.7) million. The volume of operations grew in all segments, and Nurminen Cargo and Nurminen Heavy also improved their profitability. Nurminen Cargo's turnover for the period came to EUR 70.2 (64.1) million. The turnover of the segment's railway logistics business grew significantly as a result of strong growth in imports to Russia and the expansion of the Company's rolling stock. In 2006, problems in the wood imports affected negatively the segment's financial performance. The unit's reduced dependence on wood transportation improved its turnover considerably in 2007 to EUR 2.8 (0.8) million. Due to good demand, Nurminen Heavy increased its turnover to EUR 9.5 (8.1) million. Its operating profit was EUR 0.9 (0.7) million. Nurminen Care's turnover amounted to EUR 6.7 (2.0) million, and its operating profit was EUR 0.8 (0.4) million. The increase in Nurminen Care's turnover was mainly the result of successful acquisitions. TURNOVER AND FINANCIAL PERFORMANCE FOR Q4/2007 In the fourth quarter of 2007, the Nurminen Logistics operations continued on a steady growth path. Turnover rose by 4.1 % to EUR 20.2 (2006: 19.4) million. Operating profit for 2007 totalled EUR 1.6 (0.9) million. Nurminen Cargo's turnover for the period came to EUR 18.5 (17) million. The turnover of the segment's railway logistics business grew significantly as a result of strong growth in imports to Russia and the expansion of the Company's rolling stock. In 2006, problems in the wood imports affected negatively the segment's financial performance. The unit's reduced dependence on wood transportation improved its turnover considerably in 2007 to EUR 1.2 (0.35) million. Nurminen Heavy's turnover amounted to EUR 2.1 (2.4) million, while the segment's operating profit came to EUR 0.1 (0.4) million. The decrease in profit was due to the timing of the deliveries of transported machinery and equipment. The fourth quarter of 2006 was exceptionally good. Nurminen Care's turnover amounted to EUR 2.1 (0.4) million, and its operating profit stood at EUR 0.2 (0.06) million. The increase in turnover was mainly result of successful acquisitions. CAPITAL EXPENDITURE The Group's gross capital expenditure for 2007 amounted to EUR 20.6 (13.2) million, accounting for 25.3% of turnover. Depreciation totaled EUR 4.5 (2.9) million, or 5.5% of turnover. Investments were mainly made in railway wagons and terminal buildings. In the last quarter of the year, capital expenditure totaled EUR 6.3 (3.1) million. THE STRUCTURE OF NURMINEN LOGISTICS OPERATIONS Nurminen Logistics Plc was created on 1 January 2008 when John Nurminen LLC demerged. Nurminen Logistics Plc's listing took place by transferring the main part of the logistics business operations of John Nurminen LLC to Kasola Plc. The transaction was executed on 1 January 2008 and the name of Kasola Plc was changed to Nurminen Logistics Plc. The Group comprises the parent company, Nurminen Logistics LLCj, as well as the following subsidiaries and associated companies, owned directly or indirectly by the parent: RW Logistics LLC, JN Ferrovia LLC, Nurminen Heavy Oü, OOO John Nurminen, Pietari, OOO John Nurminen, Moscow, Helsingin Ensihoito ja Sairaankuljetus LLC, LLC Turku Stevedoring Ab, Nurminen Maritime Latvia SIA, Pelkolan Terminaali LLC, ZAO Irtrans, OOO Huolintakeskus, OOO John Nurminen Terminal, ZAO Terminal Rubezh, Varsinais-Suomen Sairaankuljetus LLC, LLC Porvoon Ambulanssipalvelu - Borgå Ambulanstjänst Ab, Päijät-Hämeen Ensihoito ja Sairaankuljetus LLC, Jyväskylän Sairaankuljetus LLC, Hollolan Sairaankuljetus LLC, Orimattilan Sairaankuljetus LLC, John Nurminen Eesti AS, Nurminen Maritime UAB, Lithuania, CMA CGM Latvia SIA, CMA CGM Estonia Oü, Team Lines Latvia SIA and Team Lines Estonia Oü. PERSONNEL At the end of the financial period, the Group staff total 578, compared to 509 the year before. Nurminen Cargo had 353 employees at the year-end, Nurminen Heavy 29 and Nurminen Care 159. Management and administrative staff numbered to 37. Personnel expenses (EUR k) Salaries and fees 15,589 Other personnel expenses 3,347 Total 25,979 RESTRUCTURINGS IN 2007 Nurminen Logistics Plc was created on 1 January 2008 when John Nurminen LLC was demerged. Nurminen Logistics Plc's listing took place by transferring a part of the business operations of the divided John Nurminen LLC to Kasola Plc. The transaction was executed on 1 January 2008 when the name of Kasola Plc was changed to Nurminen Logistics Plc. The details of the demerger and the transaction were announced in a stock exchange release on 10 December 2007. 4. PRO FORMA BALANCE SHEET Accounting policies The below presented pro forma balance sheet has been prepared for illustrative purposes to describe what Company's Balance Sheet would have been in case the Nurminen Logistics operations had been acquired at the date of the balance sheet. In the pro forma balance sheet the acquisition of Nurminen Logistics operations has been treated as a reverse acquisition on the basis of IFRS 3 Business Combinations. This means that in the pro forma balance the acquirer is Nurminen Logistics operations and the acquisition target is the Company. The pro forma balance sheet presumes that the acquisition date is the date of the pro forma balance sheet. Based on the Main Agreement (as described in the above mentioned registration document) Nurminen Logistics is indebted to the new John Nurminen LLC. In this pro forma balance sheet this internal financing, totaling 15.1 million euros, is presented under long-term interest-bearing debt. In connection with the demerger of the old John Nurminen LLC, a loan agreement has been executed between Nurminen Logistics Plc and new John Nurminen LLC. The net assets of the carve-out financial information of Nurminen Logistics is the difference of the assets and liabilities transferred to Nurminen Logistics in the demerger of old John Nurminen LLC. The continuity of equity does not in these carve-out financials materialize in the same way as it does on the group financial statements to which these carve out financials are based on. -------------------------------------------------------------------------------- | NURMINEN LOGISTICS PRO FORMA BALANCE SHEET | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET, IFRS | | | -------------------------------------------------------------------------------- | 1 000 EUR | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 31.12.2007 | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Property, plant | | | 48 041 | | and equipment | | | | -------------------------------------------------------------------------------- | Goodwill | | | 15 489 | -------------------------------------------------------------------------------- | Other intangible assets | | | 2 317 | -------------------------------------------------------------------------------- | Companies consolidated | | | 210 | | using the equity method | | | | -------------------------------------------------------------------------------- | Receivables | | | 262 | -------------------------------------------------------------------------------- | Deferred tax assets | | | 337 | -------------------------------------------------------------------------------- | | | | | 66 656 | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Trade and other receivables | | | 17 783 | -------------------------------------------------------------------------------- | Cash and cash equivalents | | | 10 156 | -------------------------------------------------------------------------------- | | | | | 27 939 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | | | 94 595 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET ASSETS AND LIABILITIES| | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net assets | | | 35 556 | -------------------------------------------------------------------------------- | Minority interest | | | 1 010 | -------------------------------------------------------------------------------- | | | | | 36 566 | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | | | 760 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | | | 1 480 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | | | 35 726 | -------------------------------------------------------------------------------- | | | | | 37 966 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Trade and other payables | | | 17 210 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | | | 2 853 | -------------------------------------------------------------------------------- | | | | | 20 063 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL LIABILITIES | | | 58 029 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | TOTAL NET ASSETS AND | | | 94 595 | | LIABILITIES | | | | -------------------------------------------------------------------------------- Disclaimer Certain statements in this bulletin are forward-looking and are based on the management's current views. Due to their nature, they involve risks and uncertainties and are susceptible to changes in the general economic or industry conditions. NURMINEN LOGISTICS PLC Board of Directors For more information, please contact Lasse Paitsola, President and CEO (tel. +358 400 405 801) or Antti Sallila, CFO (tel. +358 40 513 2981). DISTRIBUTION OMX Nordic Exchange Helsinki Major media www.nurminenlogistics.com Nurminen Logistics provides high-quality logistics services, such as railway transports, terminal services, forwarding, special and heavy transports and medical transports. The company has collected logistics know-how from three centuries, starting in 1886. Nurminen Logistics' main market areas are Finland, the Baltic Sea region, Russia and other CIS countries. The company's share is listed on the Helsinki Stock Exchange. |
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