2009-03-19 10:30:00 CET
2009-03-19 10:30:06 CET
REGULATED INFORMATION
Tiimari Oyj Abp - Financial Statement Release
Tiimari has invested heavily in 2008 and records loss - MEUR 8.0 profit improvement programme launched
TIIMARI PLC STOCK EXCHANGE RELEASE 19 March 2009, at 11.30 TIIMARI PLC'S FINANCIAL STATEMENT RELEASE 2008 TIIMARI HAS INVESTED HEAVILY IN 2008 AND RECORDS LOSS- MEUR 8.0 PROFIT IMPROVEMENT PROGRAMME LAUNCHED Net sales for the final quarter grew by 8% totalling MEUR 33.7 (31.3). Net sales of the entire year grew by 15% and amounted to MEUR 85.6 (74.6). Operating profit for the final quarter before goodwill impairment totalled MEUR 4.4 (6.6), the operating profit for the entire year being MEUR -0.9 (4.3). Goodwill impairment amounted to MEUR 5.0 (0). Cash flow from operations for the financial year totalled MEUR 1.9 (5.3). Total interest-bearing liabilities aggregated MEUR 34.2 (34.0). A profit improvement programme having a total effect of MEUR 8.0 was launched at the turn of the year. In order to improve the balance sheet and the financial position, the Board of Directors proposes that no dividend be paid for the financial year 2008. In addition, the Board seeks authorisation for share issue at the Annual General Meeting April 7 2009. Earnings per share for the final quarter and the entire financial year were EUR -0.19 (0.72) and EUR -0.94 (0.32), respectively. MANAGING DIRECTOR KRISTINA ILLI: During 2008, the company continued investing heavily in expansion by opening 9 new Tiimari stores and 5 Gallerix stores in Finland and 4 new stores in Poland. Entry into the Russian and Lithuanian markets was realised through the opening of 4 stores in Russia and 1 store in Lithuania. In addition, the company invested in the renewal of the Tiimari retail chain. Besides focusing on expanding the network, the company invested in the development of operations also by creating two new retail concepts, Paperazzi and Tiimari Deco. The company opened 2 Paperazzi stores and 4 Tiimari Deco stores, in addition to which investments were made in the insourcing of the company's financial administration as well as the implementation of required systems and integration of Gallerix into the Tiimari group. All these processes required major investments and also resulted in operational expenditure. Non-recurring expenses including goodwill impairment and the foreign currency exchange differences related to internal financing approximated MEUR 6.8. Moreover, international expansion of the retail network encumbered the result by MEUR 1.0 over the previous year. The pronounced downturn in the general economic situation and demand during the final quarter had an effect on the overall development of the second half of the year. With a view to securing the long-term strategy, the company prepared a plan for increased profitability of existing business operations. Due to the weakening demand and deteriorating financial situation, the company drafted a MEUR 8.0 profit improvement programme. As the economic situation continued to decline in the beginning of 2009, the scope of the programme was extended with a decision to pull for the time being out from the Russian market (4 stores) and from Norway (1 store). The main items of the programme and their respective effects are as follows: personnel, marketing and other expenses MEUR 3.8, increased sales margin MEUR 3.0, synergy gain from the integration of Gallerix and withdrawal from the above-defined markets altogether MEUR 1.2 The improvement is expected to realise in its entirety during 2009. Increasing the sales margin is based on budgeted sales which remain at the level of 2008. In addition to the profit improvement programme, cash generation will be enhanced through the reduction of investments in 2009 by approximately MEUR 3.0 and scaling down of the purchasing programme under the working capital programme by MEUR 4.0. The profit improvement programme is proceeding according to plan. With a view to reinforcing the financial structure and balance sheet, the Board of Directors decided to propose to the Annual General Meeting that no dividend be paid. In addition, the Board of Directors decided to request the Annual General Meeting for a share issue authorisation. TIIMARI PLC Kristina Illi Managing Director Tel. +358 400 408 889 FINANCIAL STATEMENTS REVIEW 2008 TIIMARI GROUP'S NET SALES AND PROFITS Tiimari's net sales in 2008 grew by 15% to a total of MEUR 85.6 (74.6). This growth is mainly attributable to the purchase of Gallerix at the end of 2007 and the acquisition of the Swedish franchising business in September 2008. Other operating income include the MEUR 0.9 gain on the sale of the Kokkola property. Personnel expenses grew by 27% totalling MEUR 19.9 (15.7). This growth resulted mainly from business expansion. Operating profit before goodwill impairment amounted to MEUR -0.9 and including the same to MEUR -5.9 (4.3), representing -7% of net sales (6%). In addition to the goodwill impairment of MEUR 5.0, operating profit includes MEUR 1.2 in other non-recurring expenses. The goodwill impairment is due to weakening growth prospects for sales and slower than expected realisation of synergies. Furthermore, the result of the financial period was weighed down by the investment in business development and in the expansion of the retail network. Net financial expenses during the financial period amounted to MEUR 4.1 (2.7). The financial expenses were aggravated by the financing of business acquisitions and of the investment in international business expansion as well as by the foreign currency exchange differences related to the financing of subsidiaries, which totalled MEUR 0.6. The result of the financial period before tax amounted to MEUR -10.0 (1.6). Taxes for the financial period were positive at MEUR 0.1 (1.6). The result of the financial year was MEUR -9.9 (3.2), earnings per share totalling MEUR -0.94 (0.32). BUSINESS OPERATIONS TIIMARI RETAIL Net sales of Tiimari's retail concepts grew by 17% totalling MEUR 84.7 (72.6), of which Tiimari accounted for MEUR 71.1 (70.1) and Gallerix MEUR 13.6 (2.5). The largest markets are Finland and Sweden and besides these, the company invested in the expansion of business in Poland, Russia and Lithuania during the financial period. Net sales outside the main markets totalled MEUR 6.3 (5.5). Depreciations according to plan amounted to MEUR 3.4 (2.3). In addition, a goodwill impairment of MEUR 5.0 was recorded at the end of the financial period on the basis of the goodwill impairment testing and a MEUR 0.3 non-recurring impairment charge was recorded to other non-current assets. Operating profit before goodwill impairment totalled MEUR 0.9 (5.0), of which Tiimari accounted for MEUR 1.4 (4.6) and Gallerix MEUR -0.5 (0.4). Gallerix' result includes depreciation of purchase price allocations in the amount of MEUR 0.5 (0.1). The impact of the inventory valuation recognition on Tiimari's operating profit for the financial period totalled MEUR -1.7 (-0.9). During the financial year, the Group developed and expanded business in many ways. New stores were opened in Poland, Lithuania and Russia, and the company regained control over the Swedish market. Building sales up to a profitable level in new market areas takes more than a year. Accordingly, the entry into new markets encumbered the operating profit for the period by MEUR 0.7 over the previous financial period. The financial period also saw the development of new retail concepts: Tiimari Deco specialising in home decoration and the stationary retail concept Paperazzi. Altogether 6 stores reflecting these concepts were opened during the autumn. Gallerix expanded its own store network by opening 8 new stores in Sweden and 5 stores in Finland. Expansion of the Gallerix Finnish business encumbered the operating profit for the period by MEUR 0.3. Gallerix invested in improving efficiency of operations as well as in the realisation of synergies. Personnel reductions, the harmonisation of information systems as well as the integration of administrative operations of Gallerix and Tiimari in Sweden were implemented during the financial period. These measures resulted in costs of approximately MEUR 0.2 during the period. Insourcing of the Finnish financial administration function brought about MEUR 0.4 in non-recurring costs. The decreasing demand and weakening of the Group's other currencies against the euro during the last quarter impaired the profitability development of Tiimari's business, resulting in dimmer prospects for Russia and Norway, in particular. Tiimari's decision to pull out from these markets resulted in expenses of MEUR 0.2. The franchising business in Sweden was acquired in September and consolidated in the financial statements of the Group as of the beginning of September. The purchase price of MEUR 0.7 consisted of liabilities taken over and paid. Goodwill arising on the acquisition relates to the administrative and logistics synergies of the Swedish operations as well as the development of operations to reflect the Tiimari concept in Finland. Tiimari's investment in fixed assets amounted to MEUR 3.6 (2.4), of which a significant part is attributable to the renewal and opening of new stores in Finland. The investments in Poland and Russia totalled MEUR 0.6 and 0.2, respectively. Gallerix' investments amounted to MEUR 0.7, most of which are attributable to the expansion of business in Finland (MEUR 4.6 investment in 2007 included the business acquisition). At the end of the period under review, Tiimari had 208 own stores (180). The number of stores in Finland grew by 9 stores. The store count increased by 2 stores in Estonia and by 4 stores in both Russia and Poland. The first Lithuanian store was opened during the financial period. The Swedish stores are former franchise stores. Gallerix opened 5 own stores in Finland and regained control of 8 franchise stores. A central part of Tiimari's strategy is to increase the number of stores and to develop the retail concepts. The acquisition of the Gallerix concept created new opportunities for business growth. During the financial period, Tiimari developed a new stationary retail concept called Paperazzi. The first concept stores were opened in Turku and Helsinki in November. Tiimari's various concepts have synergies and promote each other. The combination of the concepts also strengthens the prerequisites for growth in the Baltic region, Poland and Sweden. -------------------------------------------------------------------------------- | Number of stores | | | -------------------------------------------------------------------------------- | | 12/2008 | 12/2007 | -------------------------------------------------------------------------------- | Finland | 166 | 157 | -------------------------------------------------------------------------------- | Estonia | 16 | 14 | -------------------------------------------------------------------------------- | Latvia | 4 | 4 | -------------------------------------------------------------------------------- | Lithuania | 1 | 0 | -------------------------------------------------------------------------------- | Norway | 1 | 1 | -------------------------------------------------------------------------------- | Poland | 8 | 4 | -------------------------------------------------------------------------------- | Russia | 4 | 0 | -------------------------------------------------------------------------------- | Sweden | 8 | 0 | -------------------------------------------------------------------------------- | Own stores | 208 | 180 | -------------------------------------------------------------------------------- | Franchise stores | | | -------------------------------------------------------------------------------- | Finland | 4 | 4 | -------------------------------------------------------------------------------- | Sweden | 0 | 9 | -------------------------------------------------------------------------------- | Tiimari stores, total | 212 | 193 | -------------------------------------------------------------------------------- | Gallerix stores | | | -------------------------------------------------------------------------------- | Finland | 6 | 1 | -------------------------------------------------------------------------------- | Sweden | 13 | 5 | -------------------------------------------------------------------------------- | Own stores | 19 | 6 | -------------------------------------------------------------------------------- | Franchise stores | | | -------------------------------------------------------------------------------- | Sweden | 79 | 87 | -------------------------------------------------------------------------------- | Gallerix stores, total | 98 | 93 | -------------------------------------------------------------------------------- | Tiimari Retail stores, total | 310 | 286 | -------------------------------------------------------------------------------- At the end of the review period, the number of employees was 828 (687). TIIMORE Net sales for Tiimore remained significantly below expectations totalling MEUR 1.1 (2.0), operating profit being MEUR -0.3 (-0.6). During the financial period, the company invested in the service concept supporting the sales promotion of corporate customers, in related systems as well as in the marketing personnel promoting the new concept and the respective personnel training. In the first quarter of the year, in accordance with the strategy of Tiimore, the product assortment was expanded and internal manufacturing was discontinued as the Kokkola unit was closed down and the premises were sold. The sales price for the premises was MEUR 1.1. The gain on the sale of approximately MEUR 0.9 is included in the operating profit. The MEUR 0.3 expenses resulting from the discontinuance of manufacture encumbered the result during the period. Ville Linna joined Tiimore Oy as the Managing Director in the beginning of September. The segment did not have any notable capital expenditure during the period. At the end of the period under review, the number of employees of the segment was 10 (30). BALANCE SHEET, FINANCIAL POSITION AND CASH FLOW Net working capital of the group was in the amount of MEUR 10.7 (15.4). The level of inventories was MEUR 23.4 (25.5), representing a decrease of MEUR 2.1 from the previous year. Totalling at MEUR 4.3 (6.9), the trade receivables demonstrated a decrease of MEUR 2.6, which was partly due to the takeover of the Swedish franchise business. Current non-interest-bearing liabilities amounted to MEUR 17.0, remaining at the level at year end 2007. Launched at the beginning of the financial period with a view to a reduced level of inventories and increased level of stock rotation, the programme for increased working capital efficiency materialised as planned. The programme is continued and the release in working capital is expected to continue to play an important role in improving the company's financial position. Long-term assets totalled MEUR 58.1 (62.0). At the end of September, Tiimari Plc's shareholders' equity was strengthened through a directed issue of MEUR 3.1. Solvency ratio was 35% (41%) and net gearing 105% (79%), Quick ratio was 16.6 % (42.8%). Shareholders' equity per share totalled at EUR 2.69 (3.85). The company's key financial figures were weighed down particularly by the loss for the financial period, the recorded MEUR 5.0 goodwill impairment as well as by the expansion investments realised in Finland and the neighbouring markets during the financial period. Total interest-bearing liabilities aggregated MEUR 34.2 (34.0) at the end of the period. Net cash flow from operations was in the amount of MEUR 1.9 (5.3), the cash flow from investment activities standing at MEUR -4.2 (-2.7). Investment in fixed assets amounted to MEUR 4.5 (2.7) and business acquisitions to MEUR 0.7 (4.6). Sales of fixed assets totalled MEUR 1.0 (6.8). The terms of Tiimari Retail Oyj's loan financing contained conditions on cash flows, operating margin and the amount of investments that were not met at the turn of the financial year. Consequently, MEUR 6.9 in liabilities previously included in non-current liabilities were recorded as current liabilities in the financial statements. After the turn of the financial year, the company has entered into a new loan agreement with the financier. The renewed MEUR 22 financing agreement was entered into with Tiimari Retail Oyj's parent company Maritii Oy. The interest margin for financing increased from the previous 1.65% to 3.5%. The new loan agreement also contains terms and conditions that restrict cash outflows from Maritii Group to Tiimari Plc, the parent company and that also restrict the minimum requirements pertaining to the total value of investments as well as to the operating margin and solvency. The operating margin requirement shall be monitored quarterly. The Group faces a tight financial situation which requires considerable profit improvement, refinancing of current funding and additional equity. In order to secure the group's financing and strengthen the balance sheet, the Board of Directors decided to propose to the Annual General Meeting that no dividend be paid for 2008. In addition, the Board of Directors decided to request the Annual General Meeting for a share issue authorisation in order to strengthen the balance sheet and improve the financial standing of the company by arranging a share issue in the range of MEUR 3 to 5. The maximum amount of the issue could be increased when over booked by MEUR 2 (Green Shoe). The Board of Directors has assigned Nordea Corporate Finance as the financial adviser to prepare and arrange the issue. If the Annual General Meeting grants the authorisation, the target is to arrange the issue before the end of May 2009 at market price using the book building -method. Hannu Ryöppönen and Sven-Olof Kulldorff, the new Members of the Board of Directors to be proposed to the Annual General Meeting, the new Managing Director as from April 7. 2009, Hannu Krook and the owners of the company that have been tentatively contacted by the company, Atine Group Oy, Assetman Oy, Baltiska Handels A.B., Oy Rosaco Ab and Suomen Kauppayhtiöt Oy have indicated their intention to subscribe new shares in the total amount of MEUR 3,0 at minimum. PERSONNEL In the period under review, the average number of employees for the group was 690 (634), and the number of personnel at the end of the period was 855 (729). Of the employees, 576 worked in Finland. The employee count was increased by business acquisitions, opening of new stores and increasing share of part-time work. At the end of the financial year, the parent company employed 17 persons (12). CORPORATE GOVERNANCE Tiimari complies with the Corporate Governance Code for Finnish listed companies issued by the Securities Market Association, which entered into force on 1 January 2009. In addition, Tiimari complies with insider guidelines of NASDAQ OMX Helsinki, effective as of 2 June 2008 as well as with its own insider guidelines. SHORT-TERM RISKS AND UNCERTAINTIES Risk management is an important part of Tiimari Group's business management policy. The company's risk management policy is aimed at securing the planned revenue growth and business continuity in the changing environment as well as assuring sustained liquidity in all circumstances. The risk management aims to identify the risks pertaining to the Group operations and to apply appropriate management practices. Tiimari Plc's Board of Directors has approved the risk management policy, and the primary risk management responsibility is on the Board and the Board Audit Committee. The Managing Director and the Management Group are responsible for the practical implementation and control of the risk management policy. Strategic risks Strategic risks relate particularly to achieving long-term growth and profitability targets and also pertain to maintaining a balance between business expansion, profitability and sound financing. The most significant factors causing uncertainty for Tiimari's business operations are due to changes in the overall consumer demand and in the competitive environment, as well as the development of demand in the company's new market areas. Our success in obtaining good business locations has a major effect on the development of both sales and profits. Other major risks relate to the development of the price level of purchases as well as to the reliability of the supply chain and to logistic fluency. Business risks Business operations are influenced particularly by unfavourable changes in demand, increases in labour and rent costs and rapid changes in price and logistic cost levels. In addition to alignment of purchase volumes and demand, timely deliveries and logistic fluency are significant risk factors. Tiimari strives to prepare for changes in consumer demand by knowing the consumer, by constantly developing the company concept and product assortment, and by implementing new and innovative business solutions. Financing risks The responsibility for the management of financing risks is vested on the Group's parent company. The centralised financing risk management policy is aimed at flexible and competitive external fund raising and hedging against unfavourable changes in the finance market. Significant fluctuations in foreign currency exchange rates present a risk to internal financing, the development of foreign subsidiaries' sales margins as well as to purchase prices. During the financial period, the Group used no derivative instruments to manage the financing risks. Other financing risks of the Group include the interest rate risk, the credit risk and the liquidity risk. Detailed information of the company's management of financing risks is presented in the notes to the Consolidated Financial Statements. A considerable part of the Group's financing agreements include traditional covenants, i.e. loan terms pertaining to Maritii Group's profitability development, solvency, investment volume and distribution of funds to the parent company. The financing risk is due to the fulfilment of these terms. The Group faces a tight financial situation which requires considerable profit improvement, refinancing of current funding and additional equity. All the above-mentioned factors involve uncertainties with a potential impact on business continuity. Liability risks Liability risk management aims at hedging insurable liability risks with a view to ensuring business continuity. The most significant Group-level liability risks that can be hedged with insurance contracts include business interruption risks and risks related to property and logistics. Insurance contracts are primarily made for a period of one year. The indemnity insurance excess is determined based on the Group's risk-bearing capacity. The tightening financing markets and downturn in the general economic situation will further increase the financial uncertainties. The downswing in the general consumer demand may impair the development of Tiimari's sales and have a negative effect on the company's future cash flows. However, the downturn in the overall economic situation has traditionally had a proportionately minor impact on Tiimari's retail sales. The risk is nevertheless being managed through an extensive profit improvement programme. ENVIRONMENT Tiimari Group engages in no production of its own. Consequently, no significant environmental risks or impacts are present in the Group's operations. Costs related to the management and minimising of environmental risks are normal operational costs that are not separately monitored. SHARE CAPITAL AND TREASURY SHARES Tiimari's share capital on 31 December 2008 was EUR 7,686,200. The number of shares and the voting rights related thereto was 11,311,070. On 29 September 2008, the Board of Directors used its authorisations for share issues by issuing 1,000,000 new shares for institutional and professional investors. The major subscribers were Atine Group Oy and Varma Mutual Pension Insurance Company. The subscription price of the shares was EUR 3.10 per share. The entire subscription price was paid on 30 September and was recognised in the distributable equity fund. The new shares became subject to trading in November. Tiimari Plc has had two stock option schemes. The scheme for 2005 has been closed. In the stock option scheme for 2006, a total of 200,000 shares can be subscribed for, and the subscription period commences on 1 September 2009. At the end of the review period, the number of treasury shares held by the company was 11,850. The number of shares has not changed since the beginning of the period. The shares held by the company account for 0.1% of share capital and voting rights. A dividend of EUR 0.16 per share totalling EUR 1,647,875.20 was paid for the financial year 2007. The reconciliation date for dividend distribution was 9 April 2008, and the dividend was paid on 17 April 2008. SHARE PRICES Tiimari's shares are quoted on the NASDAQ OMX Helsinki Ltd in the small cap group. At the end of the financial period, the price of Tiimari's share was EUR 1.41 (4.87 on 31 December 2007). The market value of the share capital was MEUR 14.9 (50.2 on 31 December 2007). The number of shareholders at the end of the review period was 2.560 (2,596). CHANGES IN SHARE OF OWNERSHIP According to information received by Tiimari Plc on 29 September 2008, Varma Mutual Pension Insurance Company's share of ownership has exceeded 5%. The new ownership of shares and voting rights totals 6.167%. According to information received by Tiimari Plc on 29 September 2008, Baltiska Handels A.B.'s share of ownership has fallen below 5%. The new ownership of voting rights and shares totals 4.57%. TIIMARI ANNUAL GENERAL MEETING 2008 Tiimari Plc Annual General Meeting held on 4 April 2008 approved the 2007 financial statements. The Annual General Meeting decided that a dividend of EUR 0.16 per share or a total of 1,647,875.20 will be paid. The Annual General Meeting discharged the Board of Directors and the Managing Director from liability for the financial year 2007. It was decided that the Board of Directors shall consist of seven members, the members elected to the Board being Arja Hautanen, Erik Helin, Teppo Kauppila, Kirsti Lindberg-Repo, Juha Mikkonen, Alexander Rosenlew and Peter Seligson. KPMG Oy Ab was selected as the company auditor, which in turn appointed the Authorised Public Accountant Sixten Nyman as the principal auditor. Under a decision by the Annual General Meeting, the Board of Directors was authorised to decide on assigning an aggregate maximum of 1,000,000 new shares in the form of a share issue or special rights (including stock options) entitling to shares pursuant to Chapter 10, Section 1 of the Finnish Companies Act in one or more tranches. The Board of Directors could decide to issue either new shares or the company's treasury shares that may be in the company's possession. The proposed maximum amount of the authorisation represented approximately 9.7% of all company shares on the date on which the invitation to the Annual General Meeting was published. The authorisation was used for financing and implementing potential acquisitions or other arrangements, consolidating the company's balance sheet and financial situation, for implementing staff engagement and incentive compensation systems or for any other purposes determined by the Board of Directors. The authorisation covered the right of the Board of Directors to decide on any and all terms and conditions of share issues and the issuing of special rights pursuant to Chapter 10, Section 1 of the Finnish Companies Act, including the right to identify the beneficiaries of shares or of special rights entitling to shares and to determine the amount of consideration. The authorisation entitled the Board of Directors to directed issues of shares or special rights i.e. to a deviation from the shareholders' pre-emptive right subject to the provisions of the applicable law. The authorisation revoked all previous authorisations and remained in force until the next Annual General Meeting. ORGANISATION MEETING OF THE BOARD OF DIRECTORS In its organisation meeting, the Board of Directors elected Peter Seligson as the Chairman. Juha Mikkonen was elected as the chairman of the Audit Committee with Teppo Kauppila and Peter Seligson as committee members. The Board of Directors elected Peter Seligson to chair the Nominating and Compensation committee and appointed Alexander Rosenlew and Arja Hautanen as committee members. EVENTS AFTER THE PERIOD UNDER REVIEW On 9 February 2009, due to the weakening demand resulting from the downturn in the general economic situation, the company decided to expand the previously launched profit improvement programme and to pull out from the Russian market for now and close down the only store in Norway. The main items of the programme and their respective effects are as follows: personnel, marketing and other expenses MEUR 3.8, increased sales margin MEUR 3.0, synergy gain from the integration of Gallerix and withdrawal from the above-defined markets altogether MEUR 1.2 The profit improvement is expected to realise during 2009. Increasing the sales margin is based on budgeted sales which remain at the level of 2008. In addition to the profit improvement programme, cash generation will be enhanced through the reduction of investment by MEUR 3.0 and scaling down of the purchasing programme under the working capital programme by MEUR 4.0. The programme for improved results was set in motion as planned. M.Sc. Economics Hannu Krook was appointed as the Managing Director of Tiimari Plc on 19 January 2009. Krook will commence his duties on 7 April 2009. Erik Helin retired from his position as a member of the Board of Directors, effective 11 February 2009. Tiina Kuusisto, Managing Director of the Tiimari Retail concept, resigned on 13 February 2009 and the Director of Finance Ville Tervola announced his resignation on 23 February 2009. ANNUAL GENERAL MEETING 2009 Tiimari Plc's Annual General Meeting will convene on 7 April 2009 at 9.00 in Scandic Hotel Marski in Helsinki. PROPOSAL BY THE BOARD OF DIRECTORS TO THE ANNUAL GENERAL MEETING At the end of the financial year, the parent company's distributable equity was in the amount of MEUR 21.6 (21.7). The Board of Directors proposes to the Annual General Meeting that the loss for the financial period totalling 1,585,287.88 be kept in retained earnings and that no dividend be paid. PROSPECTS Tiimari's business has traditionally not been sensitive to economic fluctuations as compared with many other market operators. The economic situation of Tiimari's market areas is experiencing a downturn and the demand has weakened. This is expected to have a greater impact on Tiimari's performance than before. The company is able to respond to the more extensive impact of the weakened consumer demand by pulling out from Russia for the time being and by focusing strictly on improving the profitability of the existing core business. The Group's MEUR 8.0 profit improvement programme was set in motion as planned. The effects of the programme are expected to be reflected both on the company's profitability and the cash flows from operations most strongly after the second and, particularly after the third quarter. The Board of Directors estimates that the above-mentioned measures for increased profitability and strengthened balance sheet shall enable the company - despite the weakening general economic climate - to improve significantly the profitability of its operations and to generate clearly positive cash flows from operations during 2009. Tiimari Plc Board of Directors BASIS OF PREPARATION This Interim Report was prepared in accordance with IAS 34 standard (Interim Financial Reporting) and the same accounting policies and methods of computation as in the financial statements for 2007. Financial figures presented in this document are audited. All figures in the accounts have been rounded and consequently the sum of individual figures may deviate from the presented total figure. The figures in the tables are presented in thousands of euros. Tiimari Plc has adopted the IFRS 8 standard (Operating Segments) as of 1 January 2008, which will affect the segment-specific notes to the financial statements. Figures for the comparison year have been revised accordingly. Use of Estimates: The preparation of financial statements in accordance with IFRS requires the management to use estimates and assumptions that affect reported amounts of assets and liabilities on the balance sheet, disclosure of contingent assets and liabilities and the amount of income and expenses. Although the estimates are based on the management's best knowledge of current events and actions, actual results may ultimately differ from the estimates used. The valuation principles for inventories were revised on 1 July 2008. Previously, inventories were depreciated in their entirety after a storage time of 30 months, but impairment is now staggered as follows: 30 months 25%, 36 months 25% and 42 months 50%. Were the same practice adopted in the beginning of the year, the impairment of inventories would amount to MEUR 0.7. The product sale price has on average covered both the original acquisition cost and cost of sales. Tiimari's business is characterised by seasonality with the net sales being generated largely during the final quarter. Regular goodwill impairment testing was thus carried out at the end of the financial period. Goodwill shall be tested earlier during the year in case of an indication of significant changes to the expected cash flows of a cash-generating unit arising from occurrences in business operations or in the operating environment. Adoption of the amended and new International Financial Reporting Standards (IFRS) as of 1 January 2008: - IFRIC 11 IFRS 2 - Group Treasury Share Transaction - IFRIC 12 Service Concession Agreements - IFRIC 13 Customer Loyalty Programmes - IFRIC 14 IAS 19 - The Limit on Defined Benefit Asset, Minimum Funding Requirements and their Interaction The adoption of the amended and revised standards and interpretations has no material effect on the Interim Report. CONSOLIDATED PROFIT AND LOSS ACCOUNT -------------------------------------------------------------------------------- | EUR 1.000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Net Sales | 33 724 | 31 292 | 85 644 | 74 570 | -------------------------------------------------------------------------------- | Other operating income | 127 | 176 | 1 402 | 347 | -------------------------------------------------------------------------------- | Change in inventory | -3 742 | -760 | -2 985 | -1 269 | -------------------------------------------------------------------------------- | Materials | -7 984 | -11 330 | -27 706 | -28 206 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Employee benefit costs | -6 012 | -4 594 | -19 876 | -15 708 | -------------------------------------------------------------------------------- | Depreciation | -1 173 | -757 | -3 622 | -2 402 | -------------------------------------------------------------------------------- | Goodwill impairment | -5 000 | | -5 000 | | -------------------------------------------------------------------------------- | Other operating expenses | -10 532 | -7 388 | -33 750 | -23 002 | -------------------------------------------------------------------------------- | Operating profit / loss | -592 | 6 639 | -5 893 | 4 330 | -------------------------------------------------------------------------------- | Financial income and | -1 631 | -773 | -4 116 | -2 747 | | expenses | | | | | -------------------------------------------------------------------------------- | Profit / loss before taxes | -2 222 | 5 866 | -10 008 | 1 583 | -------------------------------------------------------------------------------- | Taxes | 80 | 1 277 | 80 | 1 580 | -------------------------------------------------------------------------------- | Profit / loss for the | -2 142 | 7 143 | -9 929 | 3 163 | | period | | | | | -------------------------------------------------------------------------------- | Parent company's | -0,19 | 0,72 | -0,94 | 0,32 | | shareholders' profit, | | | | | | earnings per share | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | -0,19 | 0,72 | -0,94 | 0,32 | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | ASSETS | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Goodwill | 33 287 | 37 385 | -------------------------------------------------------------------------------- | Other intangible assets | 18 950 | 19 760 | -------------------------------------------------------------------------------- | Tangible assets | 5 616 | 4 650 | -------------------------------------------------------------------------------- | Other financial assets | 105 | 114 | -------------------------------------------------------------------------------- | Receivables | 115 | 100 | -------------------------------------------------------------------------------- | Deferred tax assets | | 30 | -------------------------------------------------------------------------------- | Total non-current assets | 58 073 | 62 039 | -------------------------------------------------------------------------------- | Inventories | 23 049 | 25 473 | -------------------------------------------------------------------------------- | Trade and other receivables | 4 255 | 6 877 | -------------------------------------------------------------------------------- | Cash and bank | 2 188 | 2 852 | -------------------------------------------------------------------------------- | Total current assets | 29 852 | 35 202 | -------------------------------------------------------------------------------- | Non-current assets available | 0 | 124 | | for sale | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 87 925 | 97 365 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | | | | LIABILITIES | | | -------------------------------------------------------------------------------- | Parent company's | | | -------------------------------------------------------------------------------- | shareholder's equity | | | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | 30 443 | 39 667 | -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Defererred tax liabilities | 6 330 | 6 692 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 12 297 | 28 220 | -------------------------------------------------------------------------------- | Provisions | 31 | 31 | -------------------------------------------------------------------------------- | Total non-current liabilities | 18 658 | 34 943 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest bearing liabilities | 21 864 | 5 787 | -------------------------------------------------------------------------------- | Account payable and other | 16 960 | 16 968 | | payable | | | -------------------------------------------------------------------------------- | Total current liabilities | 38 824 | 22 755 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 57 482 | 57 698 | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | 87 925 | 97 365 | | AND LIABILITIES | | | -------------------------------------------------------------------------------- CALCULATION OF CHANGES TO SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- | | | Distri- | | Trans- | | | -------------------------------------------------------------------------------- | | | butable | | lation | | | -------------------------------------------------------------------------------- | | Share | equity | Own | diffe- | Retaine | | | | | | | | d | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | capita | fund | shares | rences | earning | Total | | EQUITY | l | | | | s | | -------------------------------------------------------------------------------- | 1.1.2008 | 7 686 | 13 821 | -55 | -219 | 18 434 | 39 667 | -------------------------------------------------------------------------------- | Net income | | | | | 0 | 0 | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Change in | | | | -726 | 0 | -726 | | translation | | | | | | | | differences | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | -9 929 | -9 929 | | financial period | | | | | | | -------------------------------------------------------------------------------- | Total recognized | 0 | 0 | 0 | -726 | -9 929 | -10 655 | | income and | | | | | | | | expense for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | | | | | -1 648 | -1 648 | -------------------------------------------------------------------------------- | Share issue | | 3 100 | | | | 3 100 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | 0 | | share-based | | | | | | | | payment | | | | | | | | transactions | | | | | | | -------------------------------------------------------------------------------- | Other items | | | | | -21 | -21 | -------------------------------------------------------------------------------- | 31.12.2008 | 7 686 | 16 921 | -55 | -945 | 6 836 | 30 443 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Distri- | | Trans- | | | -------------------------------------------------------------------------------- | | | butable | | lation | | | -------------------------------------------------------------------------------- | | Share | equity | Own | diffe- | Retaine | | | | | | | | d | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | capita | fund | shares | rences | earning | Total | | EQUITY | l | | | | s | | -------------------------------------------------------------------------------- | 1.1.2007 | 7 686 | 11 558 | -55 | -27 | 16 729 | 35 891 | -------------------------------------------------------------------------------- | Net income | | | | | 0 | 0 | | recognized | | | | | | | | directly in | | | | | | | | equity | | | | | | | -------------------------------------------------------------------------------- | Change in | | | | -192 | 0 | -192 | | translation | | | | | | | | differences | | | | | | | -------------------------------------------------------------------------------- | Profit for the | | | | | 3 162 | 3 162 | | financial period | | | | | | | -------------------------------------------------------------------------------- | Total recognized | 0 | 0 | 0 | -192 | 3 162 | 2 970 | | income and | | | | | | | | expense for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends paid | | | | | -1 477 | -1 477 | -------------------------------------------------------------------------------- | Share issue | | 2 263 | | | | 2 263 | -------------------------------------------------------------------------------- | Equity-settled | | | | | 6 | 6 | | share-based | | | | | | | | payment | | | | | | | | transactions | | | | | | | -------------------------------------------------------------------------------- | Other items | | | | | 14 | 14 | -------------------------------------------------------------------------------- | 31.12.2007 | 7 686 | 13 821 | -55 | -219 | 18 434 | 39 667 | -------------------------------------------------------------------------------- CASH FLOW STATEMENT -------------------------------------------------------------------------------- | Cash flow from operations | 1-12/2008 | 1-12/2007 | -------------------------------------------------------------------------------- | Profit/loss for financial period | -9 929 | 3 163 | -------------------------------------------------------------------------------- | Adjustments: | | | -------------------------------------------------------------------------------- | Depreciation and impairment | 8 622 | 2 402 | -------------------------------------------------------------------------------- | Gain (+) and loss (-) on sale of fixed | -690 | | | assets | | | -------------------------------------------------------------------------------- | Financial income and expenses | 4 116 | 2 747 | -------------------------------------------------------------------------------- | Taxes | -80 | -1 580 | -------------------------------------------------------------------------------- | Other adjustments | 173 | 1 757 | -------------------------------------------------------------------------------- | Change in working capital: | | | -------------------------------------------------------------------------------- | Change in short-term receivables | 2 732 | -2 540 | -------------------------------------------------------------------------------- | Change in inventories | 2 799 | 164 | -------------------------------------------------------------------------------- | Change in short term liabilities | -2 026 | 1 888 | -------------------------------------------------------------------------------- | Interest paid | -3 104 | -3 080 | -------------------------------------------------------------------------------- | Interest income received | 58 | 193 | -------------------------------------------------------------------------------- | Other financing expenses paid | -347 | | -------------------------------------------------------------------------------- | Taxes paid | -387 | 173 | -------------------------------------------------------------------------------- | Net cash flow from operations | 1 937 | 5 287 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investment activities | | | -------------------------------------------------------------------------------- | Acquisition of subsidiary companies net | -736 | -4 645 | | cash of acquired | | | -------------------------------------------------------------------------------- | Investments in tangible and intangible | -4 505 | -2 697 | | assets | | | -------------------------------------------------------------------------------- | Capital gains from tangible and | 985 | 6 818 | | intangible assets | | | -------------------------------------------------------------------------------- | Repayment of loan receivables | 65 | -650 | -------------------------------------------------------------------------------- | Additional purchase price paid | 0 | -1 500 | -------------------------------------------------------------------------------- | Ne cash flow from investments | -4 191 | -2 674 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing activities | | | -------------------------------------------------------------------------------- | Proceeds from share issue | 3 100 | 0 | -------------------------------------------------------------------------------- | Long-term loans, increase | 0 | 12 229 | -------------------------------------------------------------------------------- | Long-term loans, decrease | -2 000 | -5 098 | -------------------------------------------------------------------------------- | Short-term loans, net change | 2 325 | -13 732 | -------------------------------------------------------------------------------- | Dividens paid | -1 648 | -1 477 | -------------------------------------------------------------------------------- | Net cash flow from financing | 1 777 | -8 078 | -------------------------------------------------------------------------------- | Change in liquid assets | -477 | -5 465 | -------------------------------------------------------------------------------- | Liquid assets, beginning of review period | 2 852 | 8 323 | -------------------------------------------------------------------------------- | Effect of exchange rate changes on liquid | -187 | -6 | | assets | | | -------------------------------------------------------------------------------- | Liquid assets, end of review period | 2 188 | 2 852 | -------------------------------------------------------------------------------- SEGMENT-SPECIFIC FIGURES Segment information has been revised as IFRS 8 was adopted as from 1.1.2008. NET SALES BY SEGMENT -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Tiimari | 29 129 | 28 175 | 71 101 | 70 091 | -------------------------------------------------------------------------------- | Gallerix | 4 545 | 2 479 | 13 624 | 2 479 | -------------------------------------------------------------------------------- | Tiimore | 308 | 658 | 1 094 | 2 040 | -------------------------------------------------------------------------------- | Unallocated | -1 244 | 661 | 1 223 | 896 | -------------------------------------------------------------------------------- | Eliminations | 986 | -681 | -1 398 | -936 | -------------------------------------------------------------------------------- | Group | 33 724 | 31 292 | 85 644 | 74 570 | -------------------------------------------------------------------------------- In 2007 sales of Gallerix was included in group sales for 2 months. OPERATING PROFIT BY SEGMENT -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Tiimari | 1 568 | 6 606 | -3 602 | 4 648 | -------------------------------------------------------------------------------- | Gallerix | -212 | 406 | -526 | 406 | -------------------------------------------------------------------------------- | Tiimore | -317 | -263 | -287 | -589 | -------------------------------------------------------------------------------- | Unallocated | -1 631 | -109 | -1 478 | -135 | -------------------------------------------------------------------------------- | Group | -592 | 6 640 | -5 893 | 4 330 | -------------------------------------------------------------------------------- DEPRECIATION AND GOODWILL IMPAIRMENT BY SEGMENT -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Tiimari | 5 843 | 955 | 7 669 | 2 070 | -------------------------------------------------------------------------------- | Gallerix | 712 | 229 | 791 | 229 | -------------------------------------------------------------------------------- | Tiimore | 46 | 44 | 107 | 91 | -------------------------------------------------------------------------------- | Unallocated | -427 | -471 | 55 | 12 | -------------------------------------------------------------------------------- | Group | 6 174 | 757 | 8 622 | 2 402 | -------------------------------------------------------------------------------- Depreciation of Tiimari segment includes impairment of goodwill MEUR 5.0. CAPITAL EXPENDITURE BY SEGMENT -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Tiimari | 3 066 | 1 733 | 4 205 | 2 413 | -------------------------------------------------------------------------------- | Gallerix | 406 | 4 633 | 747 | 4 633 | -------------------------------------------------------------------------------- | Tiimore | -86 | 94 | 2 | 225 | -------------------------------------------------------------------------------- | Unallocated | 186 | 71 | 286 | 71 | -------------------------------------------------------------------------------- | Group | 3 572 | 6 531 | 5 240 | 7 342 | -------------------------------------------------------------------------------- ASSETS BY SEGEMENT -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Tiimari | 74 312 | 82 123 | -------------------------------------------------------------------------------- | Gallerix | 8 956 | 10 827 | -------------------------------------------------------------------------------- | Tiimore | 1 103 | 1 673 | -------------------------------------------------------------------------------- | Unallocated | 3 554 | 2 742 | -------------------------------------------------------------------------------- | Group | 87 925 | 97 365 | -------------------------------------------------------------------------------- NET SALES BY GEOGRAPHICAL AREA -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Finland | 25 790 | 26 547 | 64 990 | 66 384 | -------------------------------------------------------------------------------- | Sweden | 5 073 | 2 504 | 14 317 | 2 724 | -------------------------------------------------------------------------------- | Other countries | 2 861 | 2 241 | 6 337 | 5 462 | -------------------------------------------------------------------------------- | Group | 33 724 | 31 292 | 85 644 | 74 570 | -------------------------------------------------------------------------------- EXPORT FROM FINLAND -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | -------------------------------------------------------------------------------- | | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Export | 2 355 | 1 845 | -------------------------------------------------------------------------------- INTANGIBLE ASSETS -------------------------------------------------------------------------------- | EUR 1,000 | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Book value at 1 January | 57 145 | 50 779 | -------------------------------------------------------------------------------- | Changes in exchange rates | -294 | -1 | -------------------------------------------------------------------------------- | Additions | 1 977 | 7 842 | -------------------------------------------------------------------------------- | Depreciation and impairment | -6 591 | -1 579 | -------------------------------------------------------------------------------- | Disposals and intra-balance sheet | 0 | 104 | | transfer | | | -------------------------------------------------------------------------------- | Book value at end of period | 52 237 | 57 145 | -------------------------------------------------------------------------------- TANGIBLE ASSETS -------------------------------------------------------------------------------- | EUR 1,000 | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Book value at 1 January | 4 650 | 9 890 | -------------------------------------------------------------------------------- | Changes in exchange rates | -174 | 5 | -------------------------------------------------------------------------------- | Additions | 1 494 | 1 923 | -------------------------------------------------------------------------------- | Depreciation and impairment | -354 | -823 | -------------------------------------------------------------------------------- | Disposals and intra-balance sheet | 0 | -6 345 | | transfer | | | -------------------------------------------------------------------------------- | Book value at end of period | 5 616 | 4 650 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Financial institution loans | 14 724 | 20 527 | | against the following securities | | | -------------------------------------------------------------------------------- | Real estate mortgages | 1 062 | 2 361 | -------------------------------------------------------------------------------- | Corporate mortgages | 31 137 | 31 137 | -------------------------------------------------------------------------------- | Pledged shares | 1 476 | 1 476 | -------------------------------------------------------------------------------- | Other own liabilities: | | | -------------------------------------------------------------------------------- | Bank quarantees | 2 227 | 2 340 | -------------------------------------------------------------------------------- | Other liabilities | 92 | 0 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Leasing liabilities | | | -------------------------------------------------------------------------------- | Due within one year | 90 | 30 | -------------------------------------------------------------------------------- | Due after one year | 131 | 21 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | OTHER RENT LIABILITIES | | | -------------------------------------------------------------------------------- | Due within one year | 9 858 | 12 108 | -------------------------------------------------------------------------------- | Due after one year | 14 380 | 17 814 | -------------------------------------------------------------------------------- KEY FINANCIAL FIGURES -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- | | 1-12 | 1-12 | -------------------------------------------------------------------------------- | Net sales | 85 644 | 74 570 | -------------------------------------------------------------------------------- | Operating profit / loss | -5 893 | 4 330 | -------------------------------------------------------------------------------- | Profit/loss for the financial | -9 929 | 3 163 | | period | | | -------------------------------------------------------------------------------- | Earnings per share, EUR | -0,94 | 0,32 | -------------------------------------------------------------------------------- | Shareholders' equity per share, EUR | 2,69 | 3,85 | -------------------------------------------------------------------------------- | Solvency ratio | 34,6 % | 40,8 % | -------------------------------------------------------------------------------- | Gearing | 105,0 % | 78,5 % | -------------------------------------------------------------------------------- | Balance sheet total | 87 925 | 97 365 | -------------------------------------------------------------------------------- | Average number of shares (pcs) | 10 549 | 9 909 | -------------------------------------------------------------------------------- | Net Interest-bearing liabilities | 31 973 | 31 155 | -------------------------------------------------------------------------------- CALCULATION OF KEY INDICATORS EBITDA = Operating profit + depreciations and amortizations Earnings per share (EPS), EUR= (Earnings before extraordinary items - taxes) / Average number of shares for the share issue Shareholders' equity/share, EUR= Shareholders' equity / Number of shares at the end of the review period Solvency ratio-% = Shareholders' equity*100 / (Balance sheet total-advance payments received) Gearing= (Interest-bearing liabilities - cash and bank) * 100 / SH equity Quick ratio = Short term receivables + cash and bank *100 / Current liabilities Net interest-bearing liabilities = Interest-bearing liabilities - cash and bank CLOSE CIRCLE EVENTS Atine Group Oy subscribed for a total of 325,975 new shares in the Tiimari Plc directed share issue, thereby increasing its share of ownership to 21.7%. Having subscribed for 80,645 new shares, Assetman Oy now has a 10.4% share of the capital. Oy Rosaco Ab subscribed for 20,000 new shares. Prior to the subscription, the share of ownership of the company was 0.1%, which was increased to 0.3%. Suomen Kauppayhtiöt Oy subscribed for 10,800 new shares, increasing its share of ownership to 1.2%. During the comparison period, Tiimari Plc paid back a loan in the amount of MEUR 2.4 to Virala Oy Ab, owned by the then Member of the Board, Alexander Ehrnrooth. The company granted no loans to executives or Board members and no securities were granted on their behalf. -------------------------------------------------------------------------------- | Management wages and salaries(1.000 EUR) | 2008 | 2007 | -------------------------------------------------------------------------------- | Managing Director Kristina Illi | 225 | 218 | -------------------------------------------------------------------------------- | Board Members 2008/2007 | | | -------------------------------------------------------------------------------- | Seligson Peter | 29 | 29 | -------------------------------------------------------------------------------- | Hautanen Arja | 15 | 14 | -------------------------------------------------------------------------------- | Kauppila Teppo | 11 | | -------------------------------------------------------------------------------- | Lindberg-Repo Kirsti | 14 | 14 | -------------------------------------------------------------------------------- | Mikkonen Juha | 11 | | -------------------------------------------------------------------------------- | Ehrnrooth Alexander | 4 | 14 | -------------------------------------------------------------------------------- | Lindbom Curt | 4 | 14 | -------------------------------------------------------------------------------- | Saari Mia | 4 | 14 | -------------------------------------------------------------------------------- | Helin Erik | 14 | 10 | -------------------------------------------------------------------------------- | Rosenlew Alexander | 11 | | -------------------------------------------------------------------------------- SHAREHOLDERS Major shareholders, 31 December 2008 -------------------------------------------------------------------------------- | | | % shares | -------------------------------------------------------------------------------- | | | and voting | -------------------------------------------------------------------------------- | | Shares | rights | -------------------------------------------------------------------------------- | Atine Group Ltd | 2 540 298 | 22,5 | -------------------------------------------------------------------------------- | Assetman Ltd | 1 180 645 | 10,4 | -------------------------------------------------------------------------------- | Varma Mutual Pension Insurance Company | 697 580 | 6,2 | -------------------------------------------------------------------------------- | Baltiska Handels A.B. | 516 483 | 4,6 | -------------------------------------------------------------------------------- | Ilmarinen Mutual Pension Insurance Company | 451 781 | 4,0 | -------------------------------------------------------------------------------- | Cumasa Ltd | 407 625 | 3,6 | -------------------------------------------------------------------------------- | Nordea Bank Finland Ltd, (administrative | 332 397 | 2,9 | | reg.) | | | -------------------------------------------------------------------------------- | Mutual Fund Evli Wealth Manager | 200 000 | 1,8 | -------------------------------------------------------------------------------- | Etera Mutual Pension Fund | 140 000 | 1,2 | -------------------------------------------------------------------------------- | Suomen Kauppayhtiöt Ltd | 135 800 | 1,2 | -------------------------------------------------------------------------------- | Nordea Bank Finland Plc | 122 100 | 1,1 | -------------------------------------------------------------------------------- | Sonesson Thomas | 110 314 | 1,0 | -------------------------------------------------------------------------------- | Thomas Sonesson Konsult AB | 110 314 | 1,0 | -------------------------------------------------------------------------------- | Arvo Finland Mutual Fund | 100 000 | 0,9 | -------------------------------------------------------------------------------- | Pohjola Insurance Ltd | 95 000 | 0,8 | -------------------------------------------------------------------------------- Distribution: Helsinki Stock Exchange Key media www.tiimari.com Further information: Managing Director Kristina Illi, tel +358 (0) 400 408 889
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