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2009-02-10 08:00:00 CET 2009-02-10 08:00:02 CET REGULATED INFORMATION Ponsse Oyj - Financial Statement ReleasePONSSE'S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2008PONSSE PLC FINANCIAL STATEMENT RELEASE 10 FEBRUARY 2009, 9:00 a.m. PONSSE'S FINANCIAL STATEMENTS FOR 1 JANUARY - 31 DECEMBER 2008 - Net sales amounted to EUR 293.0 (310.1) million. - Net sales during 10-12/2008 were EUR 76.8 (10-12/2007, 96.1) million. - Operating profit was EUR 13.6 (37.1) million and accounted for 4.7 (12.0) per cent of the net sales. - Operating result for 10-12/2008 was EUR -4.2 (10-12/2007, 13.1) million and accounted for -5.4 (13.7) per cent of the net sales. - Profit before taxes was EUR 6.3 (36.4) million. - Earnings per share were EUR 0.16 (0.95). - Equity ratio stood at 38.4 per cent (50.3 per cent). - Order books were valued at EUR 41.5 (110.1) million. - The Board of Directors proposes that the Annual General Meeting authorise the Board of Directors to decide on the distribution of dividends amounting to a maximum of EUR 0.10 per share during 2009. PRESIDENT AND CEO JUHO NUMMELA: During the last quarter, there was a quick downturn in the export markets as a result of the global financial crisis. Machinery deliveries concentrated on the Finnish and Swedish markets. Net sales decreased compared with the corresponding period, and operating profit turned into a loss as a result of small delivery volumes and high operating costs in relation to the prevailing situation. Net sales for the year were lower than in the preceding year. This was to be expected, given the weak demand during the latter half of the year. Order intake was weak during the last quarter. Following the results of the first round of employer-employee negotiations, the factory was shut down using temporary lay-offs. The second round of employer-employee negotiations was initiated during the last quarter of the year in order to further adjust the operations. The employer-employee negotiations are part of the Group-level programme related to reducing operating costs. Its goal is to adjust the company's operations to the market situation that will prevail after the financial crisis. The concentration of operations began during the last quarter of the year as the Brazilian assembly and R&D operations were transferred to Vieremä. The operations of subsidiary companies in North and South America were also adjusted during the last quarter. Adjustment measures regarding other subsidiaries will continue throughout spring. NET SALES Consolidated net sales for the year amounted to EUR 293.0 (310.1) million, which is 5.5 per cent less than in the comparison period. International business operations accounted for 63.3 (70.6) per cent of total net sales. Net sales for the fourth quarter totalled EUR 76.8 (96.1) million, which is 20.1 per cent less than in the previous year. Net sales were accumulated per region as follows: Nordic countries 54.7 (47.2) per cent, the rest of Europe 32.0 (41.0) per cent, North and South America 10.8 (10.2) per cent and other countries 2.5 (1.6) per cent. The development of the economy quickly slowed down during the latter half of the year. This was also strongly reflected in the demand for forest machines. The machine sales volumes were clearly lower in the latter half of the year when compared to the previous year. The only exceptions were Scandinavian main markets where business was satisfactory. Demand in Central Europe and Russia was clearly more modest during the period than in the previous year. There were no significant changes in the market situation in North America during the period when compared with the previous year. There was less demand than usual. The global developments in economy were also reflected on the new market areas, South America and Asia. New investments in chemical wood processing were postponed and the existing production capacity was adjusted for the weaker demand. PROFIT PERFORMANCE Operating profit was EUR 13.6 (37.1) million. Operating result for the fourth quarter amounted to EUR -4.2 (10-12/2007, 13.1) million. Operating profit accounted for 4.7 (12.0) per cent of net sales in the period under review. Return on capital employed (ROCE) stood at 7.5 (37.4) per cent. Staff costs for the period under review totalled EUR 48.2 (42.5) million, and other operating expenses EUR 33.6 (30.4) million. Net financial income and expenses totalled EUR -7.5 (-1.7) million, of which EUR -2.7 (-1.5) million consisted of direct financing costs. Exchange rate gains and losses due to exchange rate fluctuations are recognised in financial items. Their net effect on profit amounts to EUR -4.8 (-0.6) million. The negative change is primarily due to the rapid weakening of the Russian rouble and the Brazilian real in November-December 2008. Profit for the financial period totalled EUR 4.4 (26.5) million. Diluted and undiluted earnings per share (EPS) were EUR 0.16 (0.95). The company does not have any items that could have a dilutive effect on the earnings per share. BALANCE SHEET AND FINANCIAL POSITION At the end of the period under review, the consolidated balance sheet total amounted to EUR 174.8 (153.9) million. Inventories stood at EUR 88.3 (65.6) million. Trade receivables totalled EUR 22.2 (29.3) million and liquid assets stood at EUR 8.1 (12.6) million. The amount of Group equity was EUR 67.1 (76.5) million. Parent company equity stood at EUR 63.4 (70.8) million. The amount of interest-bearing liabilities was EUR 72.9 (33.9) million. The parent company's net receivables from other Group companies stood at EUR 57.6 (41.3) million. The parent company's receivables from subsidiaries mainly consist of current trade receivables that have been recognised at carrying value. As a result of losses due to restructuring of subsidiaries, the parent company recognised a credit loss of EUR 6.0 million in 2008. Consolidated net liabilities totalled EUR 64.6 (19.5) million, and the debt-equity ratio (gearing) was 96.6 (27.8) per cent. The equity ratio stood at 38.4 per cent (50.3 per cent) at the end of the period under review. Cash flow from business operations amounted to EUR -20.8 (19.0) million. Cash flow from investing activities amounted to EUR -8.5 (-6.4) million. ORDER INTAKE AND ORDER BOOKS Order intake for the period totalled EUR 224.4 (361.2) million, while period-end order books were valued at EUR 41.5 (110.1) million. The order books included dealers' minimum purchase commitments, based on previous practice. DISTRIBUTION NETWORK As part of its adjustment and efficiency measures, the company decided to transfer the R&D and assembly operations of debarking harvester heads from Brazil to the Vieremä factory in Finland. Ponsse Latin America Ltda continues its operations as a subsidiary providing sales and maintenance services. The business name of the Uruguayan subsidiary, Povery S.A., was changed to Ponsse Uruguay S.A. during the review period. No other changes took place in the Group structure. The subsidiaries included in the Ponsse Group are Epec Oy, Finland; OOO Ponsse, Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd, Hong Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse North America, Inc., United States of America; Ponssé S.A.S., France; Ponsse UK Ltd, Great Britain; and Ponsse Uruguay S.A., Uruguay. Sunit Oy in Kajaani, Finland, is an affiliated company in which Ponsse Plc has a holding of 34 per cent. CAPITAL EXPENDITURE AND R&D The Group's R&D expenses totalled EUR 7.6 (5.7) million during the period under review. The amount of R&D expenses capitalised during the period was EUR 1,230 (851) thousand. Capital expenditure totalled EUR 8.5 (6.6) million. Investments were in particular made in the production machinery and equipment as well as maintenance in the Vieremä factory and in the factory of the subsidiary Epec Oy. Normal maintenance investments were made during the period in IT systems. GENERAL MEETING OF SHAREHOLDERS The Annual General Meeting was held in Vieremä on 29 April 2008. The meeting dealt with matters stipulated in Section 10 of Ponsse Plc's Articles of Association. The Annual General Meeting decided to distribute a dividend of EUR 0.50 per share for the period ending on 31 December 2007. The Annual General Meeting authorised the Board of Directors to purchase a maximum of 250,000 of the Company's own shares with the Company's unrestricted equity. The purchase authorisation is valid until the next Annual General Meeting; however, no later than 30 June 2009. The Annual General Meeting also authorised the Board of Directors to decide on the assignment of a maximum of 300,000 of the Company's own shares. The authorisation is also valid until the next Annual General Meeting; however, no later than 30 June 2009. The Annual General Meeting decided to pay a bonus to the Company's staff for 2007. The amount of the bonus was confirmed at EUR 90 for each month of employment. BOARD OF DIRECTORS AND AUDITORS Ponsse Plc's Board of Directors comprised six members during the financial period: Maarit Aarni-Sirviö, Nils Hagman, Ilkka Kylävainio, Seppo Remes, Einari Vidgrén and Juha Vidgrén. Einari Vidgrén acted as Chairman of the Board and Juha Vidgrén as Vice Chairman. The Board of Directors did not establish any committees or commissions from among its members. The Board of Directors convened eleven times during the financial period. The attendance rate was 86.4 per cent. Ernst & Young Oy acted as the company auditors with Eero Huusko, Authorised Public Accountant, as the principal auditor. MANAGEMENT The following changes took place in the company's operative management during the period under review: Doctor of Technology Juho Nummela was appointed President and CEO. Jarmo Vidgrén was appointed Sales and Marketing Director and Deputy CEO, Juha Haverinen was appointed Factory Director. The appointments took effect on 1 June 2008. Doctor of Technology Juha Inberg was appointed the company's R&D and Technology Director and member of the Management Team from 1 January 2009. As of 1 July 2008, Jaakko Laurila was appointed Vice President responsible for the Russian region and President and CEO of OOO Ponsse. During the period under review, the following persons were members of the Group Management Team: Purchasing and Logistics Director Pasi Arajärvi, Factory Director Juha Haverinen (from 1 June 2008), Regional Director for South and Central America and President and CEO of Ponssé S.A.S. Tapio Ingervo (until 1 June 2008), Director for strategy and Customer Cooperation Hannu Kivelä (from 1 June 2008, until 13 January 2009), Communications Director Jari Mononen, Service Director Juhani Mäkynen, Factory Director (until 1 June 2008), President & CEO (from 1 June 2008) Juho Nummela, HR Director Paula Oksman, CFO Mikko Paananen, Technology and R&D Director Seppo Taatila (until 1 January 2009), President & CEO Arto Tiitinen (until 1 June 2008), and Sales and Marketing Director Jarmo Vidgrén. During the year under review, the following persons were members of the Group Sales Management Team: Cláudio Costa (Latin America), Tapio Ingervo (Central and Southern Europe), Marko Mattila (North America), Jaakko Laurila (Russia from 1 June 2008), Mikko Laurila (Northern Europe from 1 June 2008; until then, Asia, Oceania and Africa), Distribution Development Director Tapio Mertanen (from 1 June 2008), Service Director Juhani Mäkynen (from 1 June 2008), President and CEO Arto Tiitinen (until 1 June 2008), Norbert Schalkx (Asia, Oceania and Africa from 1 June 2008), Ville Siekkinen (Russia until 1 July 2008) and Sales and Marketing Director Jarmo Vidgrén (Northern Europe until 1 June 2008, after that Head of the Sales Management Team). PERSONNEL The Group had an average staff of 1,044 (876) during the period and employed 981 (945) people at period-end. The negotiations pursuant to the Act on Co-operation within Undertakings, started on 16 October 2008 at the company's initiative, were completed on 30 October 2008. As a result of the negotiations, a decision was taken to implement temporary lay-offs during the period 10 December 2008 - 15 May 2009. In Finland, these lay-offs affect 320 employees and 125 clerical workers. Due to weakening demand on the market, the company announced on 8 December 2008 that further employer-employee negotiations are to be started. The aim of the negotiations is to secure the company's competitiveness and improve its profitability. SHARE PERFORMANCE The trading volume of Ponsse Plc shares for 1 January - 30 December 2008 totalled 2,715,572, accounting for 9.7 per cent of the total number of shares. Share turnover came to EUR 27.1 million, and the period's lowest and highest share prices were EUR 4.25 and EUR 16.29, respectively. At the end of the period, the share price stood at EUR 4.50 and market capitalisation totalled EUR 126.0 million. At the end of the reporting period the company had 47,900 own shares in its possession. In April 2008, the Board of Directors decided to implement a share-based incentive scheme for key personnel of the Ponsse Group. The earning period of the scheme began on 1 January 2008 and ends on 31 December 2010. Some 20 persons are included in the scheme. Any incentive bonuses payable for the earning period 2008-2010 will be paid out in 2011, partly in company shares and partly in cash. The part paid out in cash covers the taxes and tax-like levies payable for the incentive. The benchmarks of the scheme are the company's share price (adjusted for dividends), the Group cash flow and net sales of maintenance services. The incentive bonuses will correspond to a maximum of approximately 120,000 Ponsse shares (also including the part paid in cash). DISCLOSURE NOTIFICATIONS No such notifications of changes in share holdings were brought to the company's attention during the review period that would require issuing a disclosure notification referred to in Chapter 2, section 9 of the Securities Markets Act. QUALITY AND ENVIRONMENT Ponsse observes in its operations the ISO 9001:2000 quality standard, the ISO 14001 environmental system standard and the OHSAS 18001 occupational safety and health standard, the first of which is certified. DNV conducted an audit related to the ISO 9001 quality system during the period. During the year under review, an external expert assessed the functionality of the company's environmental system. Development work for the system continued. The company complies with environmental legislation in its operations. Regulatory amendments are continuously monitored and the necessary actions are taken accordingly. In accordance with the company's environmental policy, Ponsse aims at developing and manufacturing products which in use exert as little load on the environment as possible. Practices and production processes are developed through internal audits and supplier audits. The resources invested in auditing have been considerable, and they have helped the company create new and better practices, both for its own operations and those of its suppliers. Production processes are being developed utilising the method of continual improvement. Good results have been achieved during the period. The Quality Assurance system introduced early in the year stresses the importance of proactive measures. The Lean Six Sigma quality improvement scheme was initiated during the year. The results from the first projects have been good. The company continued its close cooperation with Occupational Healthcare. The focus was on developing preventive OHC with active patient participation, using training among other measures. The sick absences of personnel working in Finland reduced considerably during 2008. The Group-level Data Security Team is responsible for the general development of information security, maintenance of the Group information security policy and coordination of the information security training. GOVERNANCE The company's Board of Directors has confirmed the introduction of a new code of governance that entered into force on 1 January 2009. The code is based on the recommendation approved by the Securities Market Association in October 2008, entitled ”Suomen listayhtiöiden hallinnointikoodi (Corporate Governance)”. The new code of governance can be viewed on Ponsse's website in the Investors section. RISK MANAGEMENT The Ponsse Group's risk management policy seeks to maintain and further develop a practical and comprehensive system for the management and reporting of risks. This entails a risk assessment for each function and unit, integrating risk management into the business processes, constant quality development and disseminating information on best practices. Internal supervision constitutes an essential part of risk management. The Board of Directors is responsible for the organisation of the operations and their adequacy, whilst the President and CEO is responsible for the implementation of supervision in practice. Methods of internal supervision include internal guidelines, reporting and various technical supervision systems related to activities. An internal auditor is responsible for the company's internal supervision in practice, and he reports to the Board of Directors. BUSINESS RISKS AND THEIR MANAGEMENT The global uncertainty regarding economy and finances has significantly increased during the last few months and weeks. This uncertainty strongly reflects on the company's business. The predictability of business is fundamentally lower than in normal circumstances. Estimates regarding the pace at which the economy will pick up are uncertain. The declining economic trend has increased the risks associated with the functionality of the subcontractor and supplier network. Ponsse aims to manage and minimise these risks through partnership cooperation. The financial standing of suppliers is monitored more intensely than normal. The company has also started the process of screening alternative suppliers. As part of its risk management efforts related to the availability of certain key components, the company has chosen to manufacture these components in-house. The decreasing production and invoicing volumes increase the parent company's and subsidiaries' risk regarding business profitability. A Group-level adjustment programme has been initiated in order to stabilise the situation. It involves adjusting the operating expenses for the changed demand. Should the markets further deteriorate from the current exceptionally poor state, further intensification and extension of the adjustment and efficiency measures will have to be considered. The parent company monitors the changes in asset value of Group receivables and their associated risk of impairment. The developments in maintenance services and spare part sales have a causal link with the utilisation rates of machines. The general economic situation may lead to lower harvesting volumes and utilisation rates. The economic uncertainty has increased currency rate fluctuations and borrowing costs. The key objectives of the company's financing risk management include controlling the liquidity, interest and currency risks. Ponsse has ensured its liquidity by means of credit limit agreements with a number of financial institutions. The company's financial liabilities are exclusively guaranteed by covenants. In order to minimise the impact of any adverse changes in interest rates the company uses interest rate swaps and credits tied to different reference rates. Derivative contracts and currency-denominated credits are used to minimise the adverse effects of changes in exchange rates. The financial unrest increases the uncertainties related to sales receivables. The terms and conditions of sales against invoice and receivables monitoring have been reviewed. EVENTS AFTER THE PERIOD UNDER REVIEW The company announced on 3 February 2009 that the employer-employee negotiations initiated on 8 December 2008 have been completed. The negotiations resulted in the termination of 158 contracts of employment in Finland. In addition to the terminations, the temporary lay-offs will continue in 2009. The cost effects of operational adjustments will be recognised during the financial period of 2009. Subsidiary company Epec Oy announced on 5 February 2009 that it will initiate employer-employee negotiations. The goal is to adjust the company's costs to the lower demand. OUTLOOK FOR THE FUTURE The international economic situation makes it more difficult to predict the company's business operations. The revival of the forest machine markets will decidedly depend on the stabilisation of financial markets and normalisation of real economy. The company's own cost-cutting measures will take full effect during the latter half of 2009. The order book is considerably smaller at the beginning of 2009 than the year before. The company expects that the net sales for the first six months will be poor, probably resulting in making a loss. The outlook for the latter half of the year is uncertain. ANNUAL GENERAL MEETING The Annual General Meeting will be held at the company's registered office at Ponssentie 22, 74200 Vieremä, on 28 April 2009, commencing at 10:00 a.m. BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFIT The Board of Directors of Ponsse Plc proposes that the Annual General Meeting authorise the Board of Directors to decide on the distribution of dividends amounting to a maximum of EUR 0.10 per share during 2009. PONSSE GROUP CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000) -------------------------------------------------------------------------------- | | | IFRS | IFRS | IFRS | IFRS | -------------------------------------------------------------------------------- | | | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 | -------------------------------------------------------------------------------- | NET SALES | | 76,795 | 96,087 | 293,015 | 310,053 | -------------------------------------------------------------------------------- | Increase (+)/decrease (-) in | -10,337 | -3,661 | 7,885 | 2,159 | | inventories of finished goods | | | | | | and work in progress | | | | | -------------------------------------------------------------------------------- | Other operating income | | 1,150 | 580 | 2,608 | 1,326 | -------------------------------------------------------------------------------- | Raw materials and | | -48,444 | -57,948 | -203,082 | -199,253 | | services | | | | | | -------------------------------------------------------------------------------- | Expenditure on | -12,232 | -12,244 | -48,175 | -42,538 | | employment-related benefits | | | | | -------------------------------------------------------------------------------- | Depreciation | | -1,337 | -1,106 | -5,037 | -4,270 | -------------------------------------------------------------------------------- | Other operating | | -9,743 | -8,582 | -33,586 | -30,398 | | expenses | | | | | | -------------------------------------------------------------------------------- | OPERATING PROFIT | | -4,150 | 13,127 | 13,628 | 37,080 | -------------------------------------------------------------------------------- | Share of results of associated | 40 | 21 | 91 | 1,002 | | companies | | | | | -------------------------------------------------------------------------------- | Financial income and | | -5,384 | -838 | -7,462 | -1,698 | | expenses | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | -9,492 | 12,310 | 6,258 | 36,384 | -------------------------------------------------------------------------------- | Income taxes | | 3,164 | -3,102 | -1,907 | -9,907 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | | -6,329 | 9,208 | 4,351 | 26,477 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Diluted and undiluted | | -0.23 | 0.33 | 0.16 | 0.95 | | earnings per share | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (EUR 1,000) -------------------------------------------------------------------------------- | | IFRS | IFRS | | -------------------------------------------------------------------------------- | ASSETS | 31.12.08 | 31.12.07 | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Intangible assets | 6,123 | 4,262 | | -------------------------------------------------------------------------------- | Goodwill | 3,683 | 3,737 | | -------------------------------------------------------------------------------- | Property, plant and equipment | 27,558 | 25,946 | | -------------------------------------------------------------------------------- | Financial assets | 109 | 128 | | -------------------------------------------------------------------------------- | Holdings in associated companies | 1,889 | 2,156 | | -------------------------------------------------------------------------------- | Non-current receivables | 1,820 | 403 | | -------------------------------------------------------------------------------- | Deferred tax assets | 3,121 | 1,686 | | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 44,303 | 38,318 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | -------------------------------------------------------------------------------- | Inventories | 88,308 | 65,635 | | -------------------------------------------------------------------------------- | Trade receivables | 22,155 | 29,276 | | -------------------------------------------------------------------------------- | Income tax receivables | 5,023 | 861 | | -------------------------------------------------------------------------------- | Other current receivables | 6,916 | 7,191 | | -------------------------------------------------------------------------------- | Liquid assets | 8,095 | 12,633 | | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 130,497 | 115,595 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | 174,800 | 153,914 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | EQUITY | | | | -------------------------------------------------------------------------------- | Share capital | 7,000 | 7,000 | | -------------------------------------------------------------------------------- | Other reserves | -646 | 19 | | -------------------------------------------------------------------------------- | Translation differences | -1,725 | -943 | | -------------------------------------------------------------------------------- | Retained earnings | 62,484 | 70,456 | | -------------------------------------------------------------------------------- | EQUITY OWNED | | | | -------------------------------------------------------------------------------- | BY PARENT COMPANY SHAREHOLDERS | 67,113 | 76,532 | | -------------------------------------------------------------------------------- | Minority interest | 0 | 0 | | -------------------------------------------------------------------------------- | TOTAL EQUITY | 67,113 | 76,532 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 26,140 | 16,717 | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 556 | 768 | | -------------------------------------------------------------------------------- | Other non-current liabilities | 861 | 30 | | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 27,556 | 17,515 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 46,769 | 17,225 | | -------------------------------------------------------------------------------- | Provisions | 6,058 | 4,341 | | -------------------------------------------------------------------------------- | Tax liabilities for the period | 76 | 1,752 | | -------------------------------------------------------------------------------- | Trade creditors and other current | 27,228 | 36,548 | | | liabilities | | | | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 80,131 | 59,867 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL EQUITY AND LIABILITIES | 174,800 | 153,914 | | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000) -------------------------------------------------------------------------------- | | | IFRS | IFRS | | -------------------------------------------------------------------------------- | | | 1-12/08 | 1-12/07 | | -------------------------------------------------------------------------------- | BUSINESS OPERATIONS: | | | | | -------------------------------------------------------------------------------- | Profit for the period | | 4,351 | 26,477 | | -------------------------------------------------------------------------------- | Adjustments: | | | | | -------------------------------------------------------------------------------- | Financial income and | | 7,462 | 1,698 | | | expenses | | | | | -------------------------------------------------------------------------------- | Share of the result of associated | -91 | -1,002 | | | companies | | | | -------------------------------------------------------------------------------- | Depreciation | | 5,037 | 4,270 | | -------------------------------------------------------------------------------- | Income taxes | | 2,378 | 9,897 | | -------------------------------------------------------------------------------- | Other adjustments | | -1,827 | -717 | | -------------------------------------------------------------------------------- | Cash flow before change in working | 17,308 | 40,623 | | | capital | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in working capital: | | | | | -------------------------------------------------------------------------------- | Change in current | | | -------------------------------------------------------------------------------- | non-interest-bearing | | 7,086 | -13,091 | | | receivables | | | | | -------------------------------------------------------------------------------- | Change in inventories | | -22,673 | -7,020 | | -------------------------------------------------------------------------------- | Change in current | | | -------------------------------------------------------------------------------- | non-interest-bearing | | -9,718 | 8,220 | | | creditors | | | | | -------------------------------------------------------------------------------- | Change in provisions for | | 1,717 | 824 | | | liabilities and charges | | | | | -------------------------------------------------------------------------------- | Interest received | | 281 | 298 | | -------------------------------------------------------------------------------- | Interest paid | | -2,450 | -1,463 | | -------------------------------------------------------------------------------- | Other financial items | | -4,966 | -505 | | -------------------------------------------------------------------------------- | Income taxes paid | | -7,355 | -8,886 | | -------------------------------------------------------------------------------- | NET CASH FLOW FROM BUSINESS | | -20,770 | 19,001 | | | OPERATIONS (A) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INVESTMENTS | | | | | -------------------------------------------------------------------------------- | Investments in tangible and intangible | -8,509 | -6,565 | | | assets | | | | -------------------------------------------------------------------------------- | Investments in other assets | 27 | -14 | | -------------------------------------------------------------------------------- | Repayment of loan | | 0 | 0 | | | receivables | | | | | -------------------------------------------------------------------------------- | Dividends received | | 0 | 178 | | -------------------------------------------------------------------------------- | CASH OUTFLOW FROM INVESTING | | -8,481 | -6,401 | | | ACTIVITIES (B) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FINANCING | | | | | -------------------------------------------------------------------------------- | Withdrawal/Repayment of | | | | | -------------------------------------------------------------------------------- | non-current loans | | 29,422 | 8,855 | | -------------------------------------------------------------------------------- | Change in current | | | | | -------------------------------------------------------------------------------- | interest-bearing liabilities | | 309 | -93 | | -------------------------------------------------------------------------------- | Withdrawal/Repayment of | | | | | -------------------------------------------------------------------------------- | non-current loans | | 10,253 | -5,735 | | -------------------------------------------------------------------------------- | Payment of finance lease liabilities | 122 | -116 | | -------------------------------------------------------------------------------- | Change in non-current receivables | -1,417 | -239 | | -------------------------------------------------------------------------------- | Dividends paid | | -13,976 | -11,200 | | -------------------------------------------------------------------------------- | NET CASH OUTFLOW FROM | | 24,713 | -8,529 | | | FINANCING (C) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in liquid assets | | -4,538 | 4,071 | | | (A+B+C) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid assets on 1 Jan | | 12,633 | 8,562 | | -------------------------------------------------------------------------------- | Liquid assets on 31 Dec | | 8,095 | 12,633 | | -------------------------------------------------------------------------------- RECONCILIATION OF CHANGES IN EQUITY (EUR 1,000) -------------------------------------------------------------------------------- | A = Share Capital | | | | | | | -------------------------------------------------------------------------------- | B = Share premium and other | | | | | | | reserves | | | | | | -------------------------------------------------------------------------------- | C = Translation | | | | | | | | differences | | | | | | | -------------------------------------------------------------------------------- | D = Own shares | | | | | | -------------------------------------------------------------------------------- | E = Retained earnings | -------------------------------------------------------------------------------- | F = Equity | | | | | | | -------------------------------------------------------------------------------- | | EQUITY OWNED BY PARENT COMPANY | | | | | SHAREHOLDERS | | | -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- | EQUITY 1 JAN 2008 | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Translation | 0 | 0 | -783 | 0 | 1,654 | 871 | | differences | | | | | | | -------------------------------------------------------------------------------- | NET INCOME | | | | | | | | RECOGNISED | | | | | | | -------------------------------------------------------------------------------- | DIRECTLY IN EQUITY | 0 | 0 | -783 | 0 | 1,654 | 871 | -------------------------------------------------------------------------------- | Net profit for the | 0 | 0 | | | 4,351 | 4,351 | | period | | | | | | | -------------------------------------------------------------------------------- | TOTAL RECOGNISED | 0 | 0 | -783 | 0 | 6,005 | 5,222 | | INCOME AND | | | | | | | | EXPENSES | | | | | | | -------------------------------------------------------------------------------- | Dividend | 0 | 0 | 0 | 0 | -13,97 | -13,976 | | distribution | | | | | 6 | | -------------------------------------------------------------------------------- | Purchase of the | 0 | 0 | 0 | -665 | 0 | -665 | | company's own | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | EQUITY 31 DEC 2008 | 7,000 | 20 | -1,726 | -665 | 62,484 | 67,113 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY 1 JAN 2007 | 7,000 | 20 | -750 | 0 | 54,887 | 61,157 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Translation | 0 | 0 | -193 | 0 | 291 | 98 | | differences | | | | | | | -------------------------------------------------------------------------------- | NET INCOME | | | | | | | | RECOGNISED | | | | | | | -------------------------------------------------------------------------------- | DIRECTLY IN EQUITY | 0 | 0 | -193 | 0 | 291 | 98 | -------------------------------------------------------------------------------- | Net profit for the | 0 | 0 | | | 26,477 | 26,477 | | period | | | | | | | -------------------------------------------------------------------------------- | TOTAL RECOGNISED | 0 | 0 | -193 | 0 | 26,768 | 26,575 | | INCOME AND | | | | | | | | EXPENSES | | | | | | | -------------------------------------------------------------------------------- | Dividend | 0 | 0 | 0 | 0 | -11,20 | -11,200 | | distribution | | | | | 0 | | -------------------------------------------------------------------------------- | Purchase of the | 0 | 0 | 0 | 0 | 0 | 0 | | company's own | | | | | | | | shares | | | | | | | -------------------------------------------------------------------------------- | EQUITY 31 DEC 2007 | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | | 31.12.08 | 31.12.07 | | -------------------------------------------------------------------------------- | 1. LEASING COMMITMENTS | | | 5,903 | 2,519 | | | (EUR 1,000) | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. CONTINGENT LIABILITIES (EUR | | 31.12.08 | 31.12.07 | | | 1,000) | | | | | -------------------------------------------------------------------------------- | Guarantees given on | | | 1,090 | 1,285 | | | behalf of others | | | | | | -------------------------------------------------------------------------------- | Repurchase commitments | | | 4,049 | 3,202 | | -------------------------------------------------------------------------------- | Other commitments | | | 1,443 | 1,059 | | -------------------------------------------------------------------------------- | TOTAL | | | 6,582 | 5,546 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. PROVISIONS (EUR | | | Guarantee provision | | | 1,000) | | | | | -------------------------------------------------------------------------------- | 1.1.2008 | | | 4,341 | | | -------------------------------------------------------------------------------- | Increase | | | 2,087 | | | -------------------------------------------------------------------------------- | Used provisions | | | -370 | | | -------------------------------------------------------------------------------- | 31.12.2008 | | | 6,058 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES AND RATIOS | | | 31.12.08 | 31.12.07 | | -------------------------------------------------------------------------------- | R&D expenditure, MEUR | | 7.6 | 5.7 | | -------------------------------------------------------------------------------- | Capital expenditure, MEUR | 8.5 | 6.6 | | -------------------------------------------------------------------------------- | as % of net sales | | | 2.9 | 2.1 | | -------------------------------------------------------------------------------- | Average number of | | | 1,044 | 876 | | | employees | | | | | | -------------------------------------------------------------------------------- | Order books, MEUR | | | 41.5 | 110.1 | | -------------------------------------------------------------------------------- | Equity ratio, % | | | 38.4 | 50.3 | | -------------------------------------------------------------------------------- | Diluted and undiluted earnings per share, | 0.16 | 0.95 | | | EUR | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | | | 2.40 | 2.73 | | -------------------------------------------------------------------------------- FORMULAE FOR FINANCIAL INDICATORS Average number of personnel: Average of the number of personnel at the end of each month. The calculation has been adjusted for part-time employees. Equity ratio, %: Equity + minority interest ---------------------------------------- Balance sheet total - advance payments received * 100 Earnings per share: Profit before taxes - taxes (incl. change in deferred taxes) -/+ minority interest ------------------------------------------------------------------------------ Average number of shares during the accounting period, adjusted for share issues Equity per share: Capital and reserves ---------------------------------------------- Number of shares on the balance sheet date, adjusted for share issues -------------------------------------------------------------------------------- | ORDER INTAKE, MEUR | | | 1-12/08 | 1-12/07 | | -------------------------------------------------------------------------------- | Ponsse Group | | | 224,4 | 361,2 | | -------------------------------------------------------------------------------- The financial statements have been prepared in accordance with the IFRS recognition and measurement principles; however, it does not comply with all of the requirements of IAS 34. The accounting policies for the financial statements are compatible with those for the financial statements prepared on 31 December 2007. The above figures have not been audited. The above figures have been rounded off and may therefore differ from those given in the official financial statements. This communication includes future-oriented statements that are based on the assumptions currently known by the company and its current decisions and plans. Although the company believes that the future expectations are well founded, there is no certainty that the said expectations will prove correct. This is why the results may significantly deviate from the assumptions included in the future-oriented statements as a result of, among other things, changes in the economy, markets, competitive conditions, legislation or currency exchange rates. Vieremä 10 February 2009 PONSSE PLC. Juho Nummela President and CEO Mikko Paananen CFO FURTHER INFORMATION Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690 Mikko Paananen, CFO, tel. +358 20 768 8648 or +358 400 817 036 DISTRIBUTION NASDAQ OMX Helsinki Ltd Principal media www.ponsse.com |
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