2009-02-26 11:00:00 CET
2009-02-26 11:00:05 CET
REGULATED INFORMATION
Neomarkka - Financial Statement Release
NEOMARKKA´S FINANCIAL STATEMENTS 1.1 - 31.12.2008
Neomarkka Plc FINANCIAL STATEMENT RELEASE 26.2.2009 at 12.00 1(19) NEOMARKKA´S FINANCIAL STATEMENTS 1.1 - 31.12.2008 -------------------------------------------------------------------------------- | KEY FIGURES | 2008 | 2007 | -------------------------------------------------------------------------------- | Turnover, EUR million, of which | 116.2 | 62.4 | -------------------------------------------------------------------------------- | - cable business turnover | 116.6 | 57.1 | -------------------------------------------------------------------------------- | - gains and losses from trade of | -0.5 | 5.4 | | financial assets | | | -------------------------------------------------------------------------------- | Operating profit, EUR million, of which | -1.3 | 4.2 | -------------------------------------------------------------------------------- | - cable business | 0.6 | 0.1 | -------------------------------------------------------------------------------- | - trade of financial assets | -1.8 | 4.1 | -------------------------------------------------------------------------------- | Profit for the financial year EUR | -4.9 | 1.2 | | million | | | -------------------------------------------------------------------------------- | Earnings per share EUR | -0.83 | 0.19 | -------------------------------------------------------------------------------- REPORT BY THE BOARD OF DIRECTORS 2008 MAJOR EVENTS DURING THE FINANCIAL YEAR Neomarkka has executed the new strategy since June 2007. According to the strategy, Neomarkka is an investment company that targets long-term industrial investments. Target of the investments in industry is to raise the return on the invested capital by developing the companies involved. Returns are sought both through dividend flow and an increase in value. Assets that are waiting to be invested in line with the strategy have been primarily invested in either fund-based securities or short-term money markets. Industrial private equity investments; Cables The growth of Reka Cables continued. During the first half of the year the profitability also improved. However, the growth was limited and the profitability weakened by the strong decrease in the prices of the metals at the end of the year and by the delayed extension of Riihimäki factory. Riihimäki medium- and high voltage factory extension was completed in December 2008. Due to the delayed and prolonged machinery and equipment deliveries, installations and changes due to the installations, the production capacity was reduced and thus customer needs could not be fully satisfied. The delay also caused turbulence in the production process. The quality costs and extra costs occurred due to the delay weakened the operating profit. The prices of the metals have been very volatile during the year. The rapid and deep decrease in the world market price of the metals during the end of the year burdened the operating profit for over EUR 5.0 million of which EUR 4.0 million realised in the fourth quarter. In August Neomarkka bought a majority of the shares of Russian cable manufacturer OAO Expocable. OAO Expocable produces special cables e.g. for the use of oil and gasworks. The acquisition strengthened the competition position, expanded the coverage of Neomarkka in Russia and enabled the development of the factory area in Podolsk. The company is situated next to the power cable factory of Reka Cables in Russia. An investment decision of close to EUR 20 million was made in August to develop the cable production in Russia. The amount includes machinery and equipment purchases, enlargement of the factory building and changes in the factory area and the acquisition of OAO Expocable. Except for the purchase of OAO Expocable the project is in the planning phase. The generally tightened financial situation at the year-end was shown particularly in the market situation in Russia. Power cable projects were postponed and their exact implementation timetables are not known at this phase. The competitors have given record high price-cuts to improve their weakened liquidity situation. Due to this the production of Reka Cables power cable factory has been adjusted to work only based on the customer orders. The tightened economic situation in Russia did not affect to the order book of OAO Expocable; due to the already high usage of capacity the acknowledgements of orders had to be even limited. The fourth quarter of the year of OAO Expocable was profitable. Russia´s share of the turnover during the period under review was EUR 17.7 million. OAO Expocable figures are taken into account since 1 August 2008. At the year-end the Russia´s rubel (RUB) was weakened intensively. This reduced the balance sheet values of companies in Russia and thus affected to the whole Group balance sheet values. This also decreased the financial result of the Group, thus part of the purchases of the companies, such as raw materials, are priced in Euros or US dollars. The rate differences of the Group internal long term loans are booked as translation differences in the Shareholders´ equity. These translation differences were in total EUR -1.7 million at the end of the year. The turnover of cable business was EUR 116.6 million in year 2008. The figure includes the turnover of OAO Expocable from 1 August 2008 to 31 December 2008. In the Q3 Interim Report the turnover of 2008 was estimated to be some what less than EUR 120 million. The operating profit remained slightly positive, and was EUR 0.6 million. The decrease in the prices of the metals has affected to the operating profit more than expected. Reka Cable Group (Reka Cable Ltd and its subsidiaries) has belonged to the cable business of Neomarkka Group since 1 June 2007. The following figures are comparable: -------------------------------------------------------------------------------- | REKA KAAPELI | 1-12/2008 | 1-12/2007 | -------------------------------------------------------------------------------- | Turnover, EUR million | 113.5 | 97.4 | -------------------------------------------------------------------------------- | Operating profit, EUR million | 1.3 | 5.2 | -------------------------------------------------------------------------------- The associated company Nestor Cables Ltd´s machinery installations were delayed and the entry on the market took place later than planned. The customers decreased their inventories in the autumn and at the year-end. The delay in starting the production and the changes in demand weakened the result and the liquidity of the company. The deep decrease in the metal prices affected also to the valuation of inventories and thus to the result of Nestor Cables Ltd. The loss has been included in the Group result according to share of ownership (30%). Investments in securities The gains and losses from the financial assets during the period under review were negative and the segment made operating losses. The losses were due to the decreased value of the bonds issued by the Nordea Bank Plc. The return on bonds took into account the return from the eQ Active Hedge Fund reduced by the costs arising from the loan. Neomarkka detached from the bonds on 30 June 2008. The costs incurred from the detach made earlier than what agreed in the agreement has been included to the financial figures. At the balance sheet date the funds were invested in fixed-period deposits. Regarding private equity, Oulun Puhelin Plc gave refund of capital to its´ shareholders´, Neomarkka Group´s share was EUR 0.3 million. The refund of capital decreased the value of available-for-sale financial assets in the balance sheet. There were no changes in ownership of private equity during the period. The total profits and losses on securities investments in 2008 were EUR -0.5 million and the operating loss was EUR 1.8 million. FINANCIAL STATEMENT The financial statements of the Neomarkka Group have been drawn up in accordance with the International Financial Reporting Standard (IFRS). At the end of the financial year, the consolidated turnover (IFRS) totalled EUR 116.2 million (EUR 62.4 million in 2007 and EUR 8.0 million in 2006). The consolidated result (IFRS) shows a loss of EUR 4.9 million (profit EUR 1.2 million in 2007 and EUR 3.9 million in 2006). FINANCIAL POSITION OF THE GROUP AND KEY FIGURES (IFRS) -------------------------------------------------------------------------------- | | 2008 | 2007 | 2006 | -------------------------------------------------------------------------------- | Turnover, million euros | 116.6 | 62.4 | 8.0 | -------------------------------------------------------------------------------- | Operating profit % of turnover | -1.1 | 6.7 | 82.5 | -------------------------------------------------------------------------------- | Return on equity % | neg. | 1.9 | 6.5 | -------------------------------------------------------------------------------- | Return on investment % | neg. | 4.4 | 6.6 | -------------------------------------------------------------------------------- | Equity ratio % | 47.2 | 56.1 | 59.7 | -------------------------------------------------------------------------------- | Earnings per share, EUR | -0.83 | 0.19 | 0.64 | -------------------------------------------------------------------------------- An assessment of the figures must take into account that the turnover from previous years comprised gains and losses on securities investments. NEOMARKKA SHARES: PRICES AND VOLUMES TRADED Neomarkka Plc's B shares are listed on the NASDAQ OMX Helsinki. The closing price on the last business day of the year was EUR 5.80 (EUR 9.79) per share. In 2008 the share turnover of Neomarkka B shares on the NASDAQ OMX Helsinki was 408,186 (2,548,864), comprising 6.8 % (42.3%) of all B shares and accounting for a total of EUR 3.7 (23.7) million. The lowest B share quotation in 2008 was EUR 5.31 (EUR 7.78) and the highest quotation in 2008 was EUR 10.50 (EUR 10.10). On the last business day of 2008, the total share value for Neomarkka B shares was EUR 35.4 (58.9) million. GROUP STRUCTURE AND SHAREHOLDERS Neomarkka Plc is the parent company in a Group that includes the fully owned subsidiaries Novalis Plc and Alnus Ltd with their subsidiaries. The domicile of the parent company is Hyvinkää. At the end of 2008 Neomarkka Ltd had 12,705 (12,919) shareholders. The biggest shareholder Reka Ltd, had a 50.76% (50.76%) interest at the end of the year, with 65.77% (65.77%) of all votes. Neomarkka Plc is thus part of the Reka Group. Reka Ltd's domicile is Hyvinkää. At the end of 2008, the aggregate ownership of the ten largest shareholders was 60.19% (59.82%) of all shares and 72.32% (72.06%) of all votes. Neomarkka´s Board of Directors, Managing Director and CFO owned 31 December 2008 total 28,110 B-shares. ASSESSMENT OF UNCERTAINTY FACTORS AND BUSINESS RISKS The main financial risks of Neomarkka are currency, interest rate, commodity, liquidity, credit and investment market-risks. These financial risks and their hedging measures are explained further in the notes. In accordance with the updated strategy of 2007, future risk factors are more closely tied to trends in the business operations of a small number of portfolio companies and to normal business risks. The previous strategy based Neomarkka's risk on a widely distributed market risk. The distributed market risk means that changes in the value of investment underlying the eQ active Hedge Fund will have a substantial impact on Neomarkka's financial result. The most significant risks at Reka Cables are the fluctuation in raw material costs and more rapid changes in customer behaviour than in the past. In order to be aware of the risks and prepare for them, Reka Cables Ltd has carried out an extensive risk-charting process. Activities has been developed according to the risk-charts. The company believes that the cable markets in Russia will grow and develop and has invested heavily in exploiting the business opportunities there. These investments include a risk that the growth in Russia will not take place according to expectations. Nestor Cables Ltd's business carries cable business risks and the risks involved in starting up a new company. Comments made in this report that do not refer to actual facts that have already taken place are future estimates. Such estimates include expectations concerning market trends, growth and profitability, and statements that include the terms ‘believe', ‘assume', ‘will be', or a similar expression. Since these estimates are based on current plans and estimates, they involve risks and uncertainty factors which may lead to results differing substantially from current statements. Such factors include 1) operating conditions, e.g. continued success in production and consequent efficiency benefits, availability and cost of production inputs, demand for new products, changing circumstances in respect of the acquisition of capital under acceptable conditions; 2) circumstances in the sector such as the intensity of demand for products, the competition, current and future market prices for the Group's products and related pricing pressures, the financial situation of the Group's customers and competitors, competitors' possible new competing products and 3) the general economic situation such as economic growth in the Group's main geographical market areas or changes in exchange rates and interest rates. RESEARCH AND DEVELOPMENT ACTIVITIES Group investment in R&D in 2008 amounted to EUR 0.8 million (EUR 0.2 million in 2007 and EUR 0.0 million in 2006). Investments are recorded in the books as operating expenses. R&D investments are targeted at the cable business, which has belonged to the Group since 1 June 2007. SHAREHOLDERS´ MEETING AND GOVERNANCE The Annual General Meeting was held on 11 June 2008. The AGM resolved to accept the Annual Report, the Financial Statement and the Consolidated Financial Statements from fiscal period 2007 and accepted the proposal of the Board of Directors to pay dividend of EUR 0.50 per share. From the financial year 2006 a dividend of EUR 0.30 per share was paid. The AGM discharged the Board of Directors and the Managing Director for fiscal period 2007. The AGM resolved to elect five members to the Board of Directors of Neomarkka Plc and re-elected the following members: Jorma Wiitakorpi as chairman of the Board, Matti Lainema as vice chairman and as members Ilpo Helander, Taisto Riski and Pekka Soini. The AGM resolved the Board of Directors and committees remunerations and the Board of Directors bonus remunerations. The AGM authorized the Board of Directors to acquire the company´s own shares and to decide on the issue of shares and special rights entitling to shares as proposed. During the fiscal year 2008 the authorisations were not used. As external auditor for the fiscal period 2008 the AGM elected Deloitte & Touche Ltd, Authorized Public Accountants, having Hannu Mattila, APA, as main auditor. Taisto Riski and Matti Laimema, members of the Board of Directors, are the members of the Audit Committee. The Managing Director of Neomarkka Plc is Markku E. Rentto. In December 2008 Jorma Wiitakorpi, the chairman of the Board of Directors, informed that he restrains himself from the work of the Board of Neomarkka Plc for the time being. During that time the Board of Neomarkka Plc is led by vice chairman Matti Lainema. AUDIT COMMITTEE The Board of Directors appoints an audit committee whose task is to monitor the company's financial situation, oversee the financial reports, assess the sufficiency and pertinence of the internal control and risk management, assess the compliance with legislation and regulations, and maintain communication with the auditors, and review of the auditor's reports. The audit committee reports to the Board of Directors. PERSONNEL During the 2008 financial year, there were an average of 403 people (172 in 2007 and 5 in 2006) employed by the Group. At the end of 2008, the Group had 531 employees (280 in year 2007), of whom 528 (276 in year 2007) were in the cable business. The total sum of the Group's performance-based salaries and fees in 2008 was EUR 12.4 million (EUR 5.8 million in 2007 and EUR 0.3 million in 2006). ENVIRONMENTAL FACTORS The importance of environmental factors grew when the company renewed its strategy. Caring for the environment and constantly improving business while taking the well-being of the environment into consideration are a part of Reka Cables Ltd's daily activities. The environmental programme of Reka Cables Ltd has been certified according to the ISO 14001 standards. PROPASAL FOR THE DISPOSAL OF PROFITS Parent company´s distributable funds at the end of 2008 totalled EUR 31,151,234.95, of which EUR 354,606.46 was profit for the 2008 financial year. There has been no material change in the company's financial situation after the accounting period, and the liquidity test mentioned in the Limited Liabilities Companies Act § 13.2 does not affect the amount of distributable funds. The Board proposes that the distributable funds be disposed of as follows: - as dividend EUR 0.25 per share, a total of EUR 1,505,090.00 - as Retained profit EUR 8,319,338.91 - as other unrestricted equity EUR 21,326,806.46 For the financial year 2007 was paid a dividend of EUR 0.50 per share, totalling EUR 3.0 million. COMPANY SHARES -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- | Restricted shareholders´ equity by share series: | -------------------------------------------------------------------------------- | Series A (20 votes /share) | 139,600 | 139,600 | -------------------------------------------------------------------------------- | Series B (1 vote/share) | 5,880,760 | 5,880,760 | -------------------------------------------------------------------------------- | Total | 6,020,360 | 6,020,360 | -------------------------------------------------------------------------------- DIVIDEND POLICY Neomarkka's target is to use at least 30% of its annual net profit for dividend payments. MAJOR EVENTS AFTER THE REVIEW PERIOD The volatility in the metal prices has continued strong. Reka Cables Ltd started the co-operation negotiations in January. Reka Cables Ltd is taking precautions to adjust its activities according to the changes in the market situation. The public purchase offer regarding OAO Expocable shares has ended. Along with the purchase offer Neomarkka´s share of ownership in the company increased from 81.27% to 83.34%. PROSPECTS FOR THE NEAR FUTURE The volume of the Neomarkka´s cable business is significantly tight on one hand with building and on the other hand with replacement and enlargement of electrical networks. The fluctuations of demand and exchange rates are difficult to foresee at this phase. Instead the decrease of the metal prices seems to have ended. Our target is to give more specific guidance in our first quarter interim report. From the point of implementing the strategy of Neomarkka the recession opens new possibilities even though the financing of acquisitions may appear to be challenging in this market situation. THE ANNUAL GENERAL MEETING The Board of Directors decided that the Annual General Meeting will be held on 10 June 2009 at 12.00 in Hyvinkää. The summons to the Annual General Meeting will be published on 7 May 2009. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT (IFRS) | 1.1.-31.12. | 1.1.-31.12. | | EUR 1,000 | 2008 | 2007 | -------------------------------------------------------------------------------- | Industrial business turnover | 116,647 | 57,081 | -------------------------------------------------------------------------------- | Gains and losses from the trade of | -457 | 5,362 | | financial assets | | | -------------------------------------------------------------------------------- | Turnover | 116,190 | 62,443 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in inventories of finished products | 428 | -3,375 | | and production in progress | | | -------------------------------------------------------------------------------- | Production for own use | 118 | 30 | -------------------------------------------------------------------------------- | Materials and services | -85,492 | -39,277 | -------------------------------------------------------------------------------- | Personnel expenses | -15,147 | -7,048 | -------------------------------------------------------------------------------- | Depreciation and impairment | -3,890 | -2,087 | -------------------------------------------------------------------------------- | Other operating income and expenses | -13,467 | -6,503 | -------------------------------------------------------------------------------- | | -117,449 | -58,261 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | -1,259 | 4,182 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 493 | 80 | -------------------------------------------------------------------------------- | Financial expenses | -4,405 | -2,299 | -------------------------------------------------------------------------------- | Share of the result of associates | -802 | -47 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before taxes | -5,974 | 1,916 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | 1,052 | -763 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the financial year | -4,922 | 1,153 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Allocation of profit for the year: | | | -------------------------------------------------------------------------------- | To equity holders of the parent | -5,024 | 1,153 | -------------------------------------------------------------------------------- | To minority interest | 101 | 0 | -------------------------------------------------------------------------------- | | -4,922 | 1,153 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share calculated on the | -0.83 | 0.19 | | profit attributable to the parent after | | | | and before dilution, EUR | | | -------------------------------------------------------------------------------- | Number of shares | 6,020,360 | 6,020,360 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (IFRS) | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | EUR 1,000 | | | -------------------------------------------------------------------------------- | A s s e t s | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Goodwill | 4,587 | 4,527 | -------------------------------------------------------------------------------- | Other intangible assets | 6,461 | 3,479 | -------------------------------------------------------------------------------- | Tangible assets | 33,753 | 23,916 | -------------------------------------------------------------------------------- | Shares in associates | 202 | 1,004 | -------------------------------------------------------------------------------- | Receivables | 414 | 0 | -------------------------------------------------------------------------------- | Deferred tax assets | 947 | 204 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 46,365 | 33,130 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Inventories | 17,903 | 16,815 | -------------------------------------------------------------------------------- | Financial assets recognised at fair value | 16,562 | 37,034 | | through profit and loss | | | -------------------------------------------------------------------------------- | Available-for-sale financial assets | 3,733 | 4,001 | -------------------------------------------------------------------------------- | Sales receivables and other receivables | 13,769 | 12,154 | -------------------------------------------------------------------------------- | Tax receivables from the profit | 1,975 | 0 | -------------------------------------------------------------------------------- | Cash in hand and at bank | 5,820 | 3,268 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 59,761 | 73,271 | -------------------------------------------------------------------------------- | A s s e t s | 106,126 | 106,401 | -------------------------------------------------------------------------------- | S h a r e h o l d e r s´ e q u i t y a | | | | n d l i a b i l i t i e s | | | -------------------------------------------------------------------------------- | SHAREHOLDERS´ EQUITY | | | -------------------------------------------------------------------------------- | Share capital | 24,082 | 24,082 | -------------------------------------------------------------------------------- | Premium fund | 66 | 66 | -------------------------------------------------------------------------------- | Reserve fund | 1,221 | 1,221 | -------------------------------------------------------------------------------- | Translation differences | -1,683 | -145 | -------------------------------------------------------------------------------- | Retained profit | 10,114 | 11,971 | -------------------------------------------------------------------------------- | Other unrestricted equity | 21,327 | 21,327 | -------------------------------------------------------------------------------- | Profit for the financial year | -5,024 | 1,153 | -------------------------------------------------------------------------------- | Equity attributable to equity holders of the | 50,103 | 59,675 | | parent | | | -------------------------------------------------------------------------------- | Minority interest | 159 | 0 | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | 50,263 | 59,675 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LONG-TERM LIABILITIES | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 4,056 | 2,091 | -------------------------------------------------------------------------------- | Provisions | 802 | 540 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 21,193 | 22,512 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHORT-TERM LIABILITIES | | | -------------------------------------------------------------------------------- | Tax liabilities from the profit | 497 | 198 | -------------------------------------------------------------------------------- | Reserves | 163 | 0 | -------------------------------------------------------------------------------- | Short-term interest-bearing liabilities | 11,950 | 4,999 | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 17,202 | 16,386 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 55,863 | 46,726 | -------------------------------------------------------------------------------- | S h a r e h o l d e r s´ e q u i t y a | 106,126 | 106,401 | | n d l i a b i l i t i e s | | | -------------------------------------------------------------------------------- BALANCING ACCOUNT OF SHAREHOLDERS´ EQUITY (IFRS) -------------------------------------------------------------------------------- | EUR 1,000 | Share | Premi | Reser | Trans | Other | Retai- | Min-o | Share- | | | capit | um | ve | -lati | unres- | ned | rity | holder | | | al | fund | fund | on | tric-t | profit | | s´ | | | | | | diffe | ed | | | equity | | | | | | rence | equity | | | total | | | | | | s | | | | | -------------------------------------------------------------------------------- | Share-hol | 24,08 | 66 | 1,221 | 0 | 21,327 | 13,777 | 0 | 60,473 | | ders´ | 2 | | | | | | | | | equity | | | | | | | | | | 31.12.200 | | | | | | | | | | 6 | | | | | | | | | -------------------------------------------------------------------------------- | Changes | | | | -145 | | | | -145 | -------------------------------------------------------------------------------- | Profit | | | | | | 1,153 | | 1,153 | | for the | | | | | | | | | | financial | | | | | | | | | | year | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | -145 | | 1,153 | | 1,008 | | returns | | | | | | | | | | and costs | | | | | | | | | | during | | | | | | | | | | the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -1,806 | | -1,806 | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Minority | | | | | | | 0 | 0 | -------------------------------------------------------------------------------- | Share-hol | 24,08 | 66 | 1,221 | -145 | 21,327 | 13,124 | 0 | 59,675 | | ders´ | 2 | | | | | | | | | equity | | | | | | | | | | 31.12.200 | | | | | | | | | | 7 | | | | | | | | | -------------------------------------------------------------------------------- | EUR 1,000 | Share | Premi | Reser | Trans | Other | Retai- | Min-o | Share- | | | capit | um | ve | -lati | unres- | ned | rity | holder | | | al | fund | fund | on | tric-t | profit | | s´ | | | | | | dirre | ed | | | equity | | | | | | rence | equity | | | total | | | | | | s | | | | | -------------------------------------------------------------------------------- | Share-hol | 24,08 | 66 | 1,221 | -145 | 21,327 | 13,124 | 0 | 59,675 | | ders´ | 2 | | | | | | | | | equity | | | | | | | | | | 31.12.200 | | | | | | | | | | 7 | | | | | | | | | -------------------------------------------------------------------------------- | Changes | | | | -1,53 | | | | -1,538 | | | | | | 8 | | | | | -------------------------------------------------------------------------------- | Profit | | | | | | -5,024 | | -5,024 | | for the | | | | | | | | | | financial | | | | | | | | | | year | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | -1,53 | | -5,024 | | -6,562 | | returns | | | | 8 | | | | | | and costs | | | | | | | | | | during | | | | | | | | | | the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -3,010 | | -3,010 | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Minority | | | | | | | 159 | 159 | -------------------------------------------------------------------------------- | Share-hol | 24,08 | 66 | 1,221 | -1,68 | 21,327 | 5,090 | 159 | 50,263 | | ders´ | 2 | | | 3 | | | | | | equity | | | | | | | | | | 31.12.200 | | | | | | | | | | 8 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT (IFRS) | 1.1.-31.12. | 1.1.-31.12. | | EUR 1,000 | 2008 | 2007 | -------------------------------------------------------------------------------- | Operating activities | | | -------------------------------------------------------------------------------- | Payments received from operating activities | 140,259 | 173,612 | -------------------------------------------------------------------------------- | Payments paid on operating activities | -113,790 | -106,229 | -------------------------------------------------------------------------------- | Paid interests and other financial expenses | -3,149 | -4,032 | -------------------------------------------------------------------------------- | Interests received and other financial | 99 | 29 | | incomes | | | -------------------------------------------------------------------------------- | Direct taxes paid | -1,794 | -2,537 | -------------------------------------------------------------------------------- | Total operating activities | 21,626 | 60,842 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investing activities | | | -------------------------------------------------------------------------------- | Acquisition of subsidiaries and new | -6,595 | -28,038 | | business | | | -------------------------------------------------------------------------------- | Investments in tangible assets | -10,056 | -10,794 | -------------------------------------------------------------------------------- | Sales of tangible assets | 19 | 0 | -------------------------------------------------------------------------------- | Investments in intangible assets | -2 | 0 | -------------------------------------------------------------------------------- | Total investing activities | -16,634 | -38,831 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financing activities | | | -------------------------------------------------------------------------------- | Increase in loans | 5,540 | 25,150 | -------------------------------------------------------------------------------- | Decrease in loans | -4,171 | -45,132 | -------------------------------------------------------------------------------- | Payments of financial leasing | -651 | -299 | -------------------------------------------------------------------------------- | Dividends paid | -2,968 | -1,786 | -------------------------------------------------------------------------------- | Total financing activities | -2,250 | -22,067 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Cash flow for the period | 2,741 | -56 | -------------------------------------------------------------------------------- | Liquid funds at beginning of the period | 3,268 | 3,324 | -------------------------------------------------------------------------------- | Exchange rates | -189 | 0 | -------------------------------------------------------------------------------- | LiQUID FUNDS AT END OF PERIOD | 5,820 | 3,268 | -------------------------------------------------------------------------------- NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Neomarkka Plc is the parent company of a group comprising its wholly-owned subsidiaries Novalis plc and Alnus Oy with their subsidiaries. The domicile of the parent company is Hyvinkää. The address of Neomarkka Plc is Aleksanterinkatu 48 A, 00100 Helsinki. Neomarkka Plc's B shares are listed on NASDAQ OMX Helsinki. Neomarkka Group is part of the Reka Group. The parent company of the Reka Group is Reka Ltd, which is domiciled in Hyvinkää. Reka Ltd's address is Niinistönkatu 8-12, 05800 Hyvinkää. Neomarkka Group consists of two segments: investments in securities and industrial private equity investments. At the time of closing the accounts, industrial private equity investments comprised on one business area: cable industry. Apart from Finland, Neomarkka Group has operations in Russia, Sweden, the Baltic countries and Denmark. PRINCIPLES FOR DRAWING UP CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards, in compliance with the IAS- and IRFS- standards and interpretations as well as SIC- and IFRIC-interpretations effective at 31 December 2008. The International Financial Reporting Standards stand for standards and their interpretations, enacted in the Finnish Accounting Act and in regulations passed by force of the act, which have been approved by the European Union in accordance with EU Regulation 1606/2002. The notes to the consolidated financial statements also comply with Finnish accounting and companies legislation. The consolidated financial statements have been prepared based on original cost except the following assets that have been measured at fair value: financial assets recognised at fair value through profit and loss, derivative financial instruments, cash and cash equivalents and tangible and intangible assets measured at fair value in the calculation of the acquisition cost of Reka Cables Ltd (2007) and OAO Expocable (2008) under IFRS 3. The following interpretations are compulsory in 2008 but have no importance for the Group: - IFRIC 11 IFRS 2 - Group and Treasury Share Transactions - IFRIC 12 Service Concession Arrangements - IFRIC 14 IAS 19 - The limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction The figures of the financial statement release have been audited by the company auditors. SEGMENT INFORMATION The segment information is presented in accordance with the Group's business and geographical segment division. The Group has defined the business segment as its primary segment and the geographical segment as its secondary segment. Pricing between segments takes place at market price. Primary segment The Group's main segments are investments in securities and industrial private equity investments. Investments in securities are a single entity. Industrial private equity investments are divided in different operating sectors if necessary. On the balance sheet date, industrial private equity investments consisted of the cable business area. -------------------------------------------------------------------------------- | EUR 1,000 | Investment | Industrial | Others and | Total | | 2007 | in | Investment; | eliminations | | | | securities | cables | | | -------------------------------------------------------------------------------- | Industrial business | 0 | 116,647 | | 116,647 | | turnover | | | | | -------------------------------------------------------------------------------- | Gains and losses from | -457 | 0 | | -457 | | the trade of | | | | | | financial assets | | | | | -------------------------------------------------------------------------------- | Turnover | -457 | 116,647 | | 116,190 | -------------------------------------------------------------------------------- | Segment operating | -1,835 | 618 | | -1,217 | | profit | | | | | -------------------------------------------------------------------------------- | Unallocated items | | | -43 | -43 | -------------------------------------------------------------------------------- | Operating profit | | | | -1,259 | -------------------------------------------------------------------------------- | Share of the result | | -802 | | | | of associates | | | | -802 | -------------------------------------------------------------------------------- | Unallocated items | | | | -2,860 | -------------------------------------------------------------------------------- | Profit for the | | | | -4,922 | | financial year | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Segment assets | 24,002 | 78,854 | | 102,856 | -------------------------------------------------------------------------------- | Unallocated assets | | | 3,270 | 3,270 | -------------------------------------------------------------------------------- | Total assets | 24,002 | 78,854 | 3,270 | 106,126 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Segment liabilities | 351 | 21,680 | | 22,031 | -------------------------------------------------------------------------------- | Unallocated | | | 33,833 | 33,833 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total liabilities | 351 | 21,680 | 33,833 | 55,863 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Assets - Liabilities | 23,651 | 57,175 | -30,563 | 50,263 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 0 | 10,971 | -109 | 10,862 | -------------------------------------------------------------------------------- | Depreciations | -22 | -3,868 | 0 | -3,890 | -------------------------------------------------------------------------------- | 2007 | Investment | Industrial | Others and | Total | | | in | Investment; | eliminations | | | | securities | cables | | | -------------------------------------------------------------------------------- | Industrial business | 0 | 57,081 | | 57,081 | | turnover | | | | | -------------------------------------------------------------------------------- | Gains and losses from | 5,362 | 0 | | 5,362 | | the trade of | | | | | | financial assets | | | | | -------------------------------------------------------------------------------- | Turnover | 5,362 | 57,081 | | 62,443 | -------------------------------------------------------------------------------- | Segment operating | 4,087 | 82 | | 4,169 | | profit | | | | | -------------------------------------------------------------------------------- | Unallocated items | | | 13 | 13 | -------------------------------------------------------------------------------- | Operating profit | | | | 4,182 | -------------------------------------------------------------------------------- | Share of the result | | -47 | | -47 | | of associates | | | | | -------------------------------------------------------------------------------- | Unallocated items | | | | -2,982 | -------------------------------------------------------------------------------- | Profit for the | | | | 1,153 | | financial year | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Segment assets | 41,310 | 64,084 | | 105,395 | -------------------------------------------------------------------------------- | Unallocated assets | | | 1,007 | 1,007 | -------------------------------------------------------------------------------- | Total assets | 41,310 | 64,084 | 1,007 | 106,401 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Segment liabilities | 637 | 16,099 | | 16,736 | -------------------------------------------------------------------------------- | Unallocated | | | 29,990 | 29,990 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total liabilities | 637 | 16,099 | 29,990 | 46,727 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Assets - Liabilities | 40,673 | 47,985 | -28,984 | 59,675 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | 0 | 5,824 | 2,905 | 8,729 | -------------------------------------------------------------------------------- | Depreciations | -24 | -1,964 | -99 | -2,087 | -------------------------------------------------------------------------------- Secondary segment The Group's secondary segment is geographical, with division into EU and non-EU countries. In the geographical segment, turnover has been taken into account according to where good or services have been delivered, and assets have been handled according to location. Investment has been treated on the basis of the area in which the investment has been made. Investments in securities have principally been taken into account in full in the EU figures in spite of the fact that the investments may have been outside EU during part of the year. -------------------------------------------------------------------------------- | EUR 1,000 | Turnover | Assets | Investments | -------------------------------------------------------------------------------- | | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | EU-countries | 96,885 | 56,352 | 104,512 | 105,285 | 10,817 | 8,421 | -------------------------------------------------------------------------------- | Non-EU-countries | 19,305 | 6,091 | 19,855 | 10,951 | 45 | 2,244 | -------------------------------------------------------------------------------- | Eliminations and | 0 | 0 | -18,241 | -9,835 | 0 | -1,936 | | unallocated | | | | | | | | items | | | | | | | -------------------------------------------------------------------------------- | Group total | 116,190 | 62,443 | 106,126 | 106,401 | 10,862 | 8,729 | -------------------------------------------------------------------------------- Acquisitions of subsidiaries and associates have not been treated as investments. AQUIRED BUSINESS OAO Expocable In a share transaction completed on 4 August 2008 Neomarkka bought a majority of the shares of OAO Expocable. The price was paid in cash in two parts of which the last payment in February 2009. In addition to the price for the shares, the acquisition price includes expert fees and taxes. The following assets and liabilities were recognised on the acquisition under IFRS 3 in related to the acquired 81.27%. The purchase price allocation is preliminary. -------------------------------------------------------------------------------- | EUR 1,000 | Acquiree´s | Fair value | Fair value | | | carrying amount | adjustments | | | | before | | | | | combination | | | -------------------------------------------------------------------------------- | Net assets acquired | | | | -------------------------------------------------------------------------------- | Intangible assets | 0 | 4,136 | 4,136 | -------------------------------------------------------------------------------- | Tangible assets | 171 | 4,771 | 4,942 | -------------------------------------------------------------------------------- | Inventories | 668 | 0 | 668 | -------------------------------------------------------------------------------- | Current receivables | 238 | 0 | 238 | -------------------------------------------------------------------------------- | Cash in hand and at bank | 130 | 0 | 130 | -------------------------------------------------------------------------------- | Short term liabilities | -862 | 0 | -862 | -------------------------------------------------------------------------------- | Deferred tax liability | 0 | -2,138 | -2,138 | -------------------------------------------------------------------------------- | Net assets acquired | | | 7,113 | -------------------------------------------------------------------------------- | Goodwill arising on acquisition | | 139 | -------------------------------------------------------------------------------- | Total consideration, satisfied by cash | | 7,252 | -------------------------------------------------------------------------------- | Net cash outflow arising on acquisition: | | -------------------------------------------------------------------------------- | Cash consideration, expert fees and taxes | -7,252 | -------------------------------------------------------------------------------- | Cash and cash equivalents acquired | | 130 | -------------------------------------------------------------------------------- | Net cash outflow arising on acquisition: | | -7,122 | -------------------------------------------------------------------------------- Changes in the fair values of intangible assets comprise rights (electricity and gas). The fair value changes of tangible assets are related to the building and land. The financial result of OAO Expocable in the period 1 August 2008 - 31 December 2008 was EUR 0.5 million of which EUR 0.4 million belongs to the shareholders´ of Neomarkka. If OAO Expocable had been acquired at the beginning of the financial period, the turnover in the cable operations (1 January 2008 - 31 December 2008) would have totalled EUR 119.1 million, bringing Neomarkka's turnover to EUR 118.7 million and result for the financial year to EUR -5.3 million. LIABILITIES -------------------------------------------------------------------------------- | DERIVATIVE CONTRACTS, EUR 1,000 | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Nominal values | | | -------------------------------------------------------------------------------- | Interest derivatives | | | -------------------------------------------------------------------------------- | Interest swaps | 14,590 | 0 | -------------------------------------------------------------------------------- | Interest rate ceiling derivatives | 9,800 | 9,800 | -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | -------------------------------------------------------------------------------- | Currency options | 2,500 | 0 | -------------------------------------------------------------------------------- | Raw material derivatives | | | -------------------------------------------------------------------------------- | Price hedging for metals | 3,655 | 1,119 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | -------------------------------------------------------------------------------- | Interest derivatives | | | -------------------------------------------------------------------------------- | Interest swaps | -315 | 0 | -------------------------------------------------------------------------------- | Interest rate ceiling derivatives | 28 | 27 | -------------------------------------------------------------------------------- | Foreign exchange derivatives | | | -------------------------------------------------------------------------------- | Currency options | -21 | 0 | -------------------------------------------------------------------------------- | Raw material derivatives | | | -------------------------------------------------------------------------------- | Price hedging for metals | -1,433 | -36 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | EUR 1,000 | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Debts, on behalf corporate mortgages are | | | | given | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 8,467 | 7,891 | -------------------------------------------------------------------------------- | Granted corporate mortgages | 15,000 | 15,000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debts, on securities or guarantees are | | | | given behalf | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 11,900 | 13,033 | -------------------------------------------------------------------------------- | Book value of pledged securities | 26,987 | 26,987 | -------------------------------------------------------------------------------- | Granted guarantees | 11,900 | 13,033 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OTHER COLLATERALS | | | -------------------------------------------------------------------------------- | Counter guarantees | 1,326 | 0 | -------------------------------------------------------------------------------- | Guarantees and payment commitments | 1,058 | 120 | -------------------------------------------------------------------------------- Reka Cables Ltd has made a commitment to the raw material acquisitions of its subsidiary ZAO Reka Cables. Payment commitment is included in the figures above. On 31 December 2008 the sales receivables concerned as security for the factoring credit were EUR 3.9 million (EUR 4.7 million 31 Dec 2007). The factoring credit on 31 December 2008 was EUR 3.5 million (EUR 4.2 million 31 Dec 2007). The covenants and the terms are attached to the above financial institution loans. The relevant terms are as follows: - Neomarkka Group´s share of ownership in the companies that have raised loans cannot go under 50% without consent from the financier. - Neomarkka Group´s internal financing (subordinated loan EUR 13.6 million) can be settled only after the above mentioned loans have been settled. - the companies with loans and their subgroups equity ratio is to be at least 30%. - the companies with loans and their subgroups current liabilities with interest/ (operating profit + depreciations) - key figure can be max 3.5. At the moment of the financial statement some of the terms were unfulfilled. The management of the company considers that this matter has no relevant effect on the terms of the loans. Investment commitments Investment commitments on tangible current assets on 31 December 2008 totalled EUR 0.0 million (end 2007: EUR 6.2 million). Investment commitments in 2007 were related to the extension of the cable production plant in Riihimäki. Adjustment of purchase price Concerning the acquisition of Reka Cables the parties to the deal have agreed on an adjustment to the purchase price on the basis of the average operating margin of Reka Cables in 2007 and 2008. At the most, the price can be raised or lowered by EUR 3.5 million. The adjustment of the purchase price requires calculations based on the confirmed financial statement. To the calculations the terms of the deal need to be interpreted. The amount of the final purchase price is foreseen to be confirmed during the spring 2009 in the negotiations between the parties. In the financial statement the purchase price of Reka Cables has been valued at the original purchase price. Contingent liabilities for associates The owner companies and founder shareholders of Nestor Cables Ltd have undertaken to increase equity-rated funding to the company if the corporate equity ratio is 15% or below in the financial statements of 31 December 2008 or if the company is found insolvent or over-indebted before the approval of the said financial statements as specified in section 5 of the Act on Recovery into a Bankruptcy estate (758/1991). At most the equity investment obligation of the Neomarkka Group in such a situation is EUR 0.9 million. RELATED PARTY EVENTS Neomarkka Plc and thereby the Neomarkka Group is part of the Reka Group. Reka Ltd's share of Neomarkka Plc's share capital is 50.76% and 65.78% of the voting rights. -------------------------------------------------------------------------------- | BUSINESS WITH REKA GROUP | -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales to Reka Group | 90 | 69 | -------------------------------------------------------------------------------- | Dividends to Reka Group | -1,528 | -587 | -------------------------------------------------------------------------------- | Acquisition of Reka Cables Ltd | 0 | -25,803 | -------------------------------------------------------------------------------- | Other purchases from Reka Group | -1,102 | -4,359 | -------------------------------------------------------------------------------- | Sales receivables and other receivables at end of | 398 | 604 | | period | | | -------------------------------------------------------------------------------- | Non-current debts (financial leases) at end of | -9,237 | -5,204 | | period | | | -------------------------------------------------------------------------------- | Other debts at end of period | -35 | -375 | -------------------------------------------------------------------------------- | Guarantees received | 0 | 1,547 | -------------------------------------------------------------------------------- KEY FIGURES Key figures from the Income Statement and Balance Sheet -------------------------------------------------------------------------------- | EUR 1,000 | 2008 | 2007 | 2006 | -------------------------------------------------------------------------------- | Industrial business turnover | 116,647 | 57,081 | 0 | -------------------------------------------------------------------------------- | Gains and losses from the trade of | -457 | 5,362 | 8,033 | | financial assets | | | | -------------------------------------------------------------------------------- | Turnover | 116,190 | 62,443 | 8,033 | -------------------------------------------------------------------------------- | Operating profit | -1,259 | 4,182 | 6,627 | -------------------------------------------------------------------------------- | - Industrial investments | 618 | 82 | 0 | -------------------------------------------------------------------------------- | - Trade of financial assets | -1,835 | 4,087 | 6,627 | -------------------------------------------------------------------------------- | - Other and eliminations | -43 | 13 | 0 | -------------------------------------------------------------------------------- | Operating profit % | -1.1 | 6.7 | 82.5 | -------------------------------------------------------------------------------- | Profit before taxes | -5,974 | 1,916 | 4,968 | -------------------------------------------------------------------------------- | % of net turnover | -5.1 | 3.1 | 61.9 | -------------------------------------------------------------------------------- | Profit/loss for the financial year | -4,922 | 1,153 | 3,880 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity % (ROE) | neg. | 1.9 | 6.5 | -------------------------------------------------------------------------------- | Return on investment % (ROI) | neg. | 4.4 | 6.6 | -------------------------------------------------------------------------------- | Equity ratio, % | 47.2 | 56.1 | 59.7 | -------------------------------------------------------------------------------- | Net-debt-equity ratio (Gearing), % | 21.5 | 13.7 | 54.4 | -------------------------------------------------------------------------------- | Investments in tangible assets | 9,313 | 8,572 | 65 | -------------------------------------------------------------------------------- | Number of employees in average | 403 | 172 | 5 | -------------------------------------------------------------------------------- Key figures per share (series A and B) -------------------------------------------------------------------------------- | | 2008 | 2007 | 2006 | -------------------------------------------------------------------------------- | Equity/share, EUR | 8.32 | 9.91 | 10.04 | -------------------------------------------------------------------------------- | Earnings/share (EPS), EUR | -0.83 | 0.19 | 0.64 | -------------------------------------------------------------------------------- | Dividend/share, EUR | 0.25 | 0.50 | 0.30 | -------------------------------------------------------------------------------- | Dividend/earnings, % | neg. | 261.0 | 46.5 | -------------------------------------------------------------------------------- | Effective dividend yield, % | 4.3 | 5.1 | 3.9 | -------------------------------------------------------------------------------- | P/E -ratio | neg. | 51.1 | 12.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share performance, EUR | | | | -------------------------------------------------------------------------------- | - average quotation | 9.06 | 9.29 | 8.53 | -------------------------------------------------------------------------------- | - lowest quotation | 5.31 | 7.78 | 7.31 | -------------------------------------------------------------------------------- | - highest quotation | 10.50 | 10.10 | 9.20 | -------------------------------------------------------------------------------- | - quotation at the end of period | 5.80 | 9.79 | 7.76 | -------------------------------------------------------------------------------- | Market capitalisation, | 35,373 | 58,870 | 45,635 | | EUR 1,000 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trading in shares, no. | | | | -------------------------------------------------------------------------------- | B shares | 408,186 | 2,548,864 | 1,545,060 | -------------------------------------------------------------------------------- | - % of B shares | 6.8 | 42.3 | 26.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Adjusted and weighted average | 6,020,360 | 6,020,360 | 6,020,360 | | number of shares during the year | | | | -------------------------------------------------------------------------------- | A shares | 139,600 | 139,600 | 139,600 | -------------------------------------------------------------------------------- | B shares | 5,880,760 | 5,880,760 | 5,880,760 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Adjusted number of shares at the | 6,020,360 | 6,020,360 | 6,020,360 | | end of period | | | | -------------------------------------------------------------------------------- | A shares | 139,600 | 139,600 | 139,600 | -------------------------------------------------------------------------------- | B shares | 5,880,760 | 5,880,760 | 5,880,760 | -------------------------------------------------------------------------------- CALCULATION OF KEY FIGURES -------------------------------------------------------------------------------- | Return on | = | Profit for the period / | x 100 | -------------------------------------------------------------------------------- | equity (ROE) % | | Shareholders' equity (average) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on | = | Profit before taxes + interest and other | x 100 | | investment | | financial expenses / | | -------------------------------------------------------------------------------- | (ROI) % | | [Balance sheet total - obligatory provisions and | | | | non-interest bearing debts] (average) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity ratio, % | = | Shareholders' equity + minority interest | x 100 | | | | less deferred tax assets / | | -------------------------------------------------------------------------------- | | | Balance sheet total - advances received | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net-debt-equity | = | Interest bearing-liabilities - cash in | x 100 | | ratio (Gearing) % | | hand and at bank and other liquid | | | | | financial and investment securities / | | -------------------------------------------------------------------------------- | | | Shareholders´ equity + minority | | | | | interest | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | = | Profit for the review period belonging | | | share (EPS), EUR | | to parent company owners / | | -------------------------------------------------------------------------------- | | | Number of shares, adjusted for share | | | | | issues (average) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity per share, | = | Shareholders´ equity - minority interest | | | EUR | | minus deferred taxes / | | -------------------------------------------------------------------------------- | | | Number of shares adjusted for share | | | | | issues at the end of the financial | | | | | period | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Dividend/share, | = | Dividend for the financial year / | | -------------------------------------------------------------------------------- | EUR | | Number of shares adjusted for share | | | | | issues at the end of the financial | | | | | period | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Dividend/earnings | = | Dividend/share / | x 100 | | , | | | | -------------------------------------------------------------------------------- | % | | Earnings/share | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effective | = | Dividend/share / | x 100 | | dividend | | | |-------------------------------------------------------------------------------- | yield, % | | Closing price at year-end adjusted for | | | | | share issues | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P/E - ratio | = | Closing price at year-end adjusted for share | | | | issues / | -------------------------------------------------------------------------------- | | | Earnings/share | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market | = | (No. of series B shares - no. of own B shares) x | | capitalisation | | closing price at year end | -------------------------------------------------------------------------------- | | | + No. of series A shares x average share price | -------------------------------------------------------------------------------- Helsinki 26.2.2009 Neomarkka Plc Board of Directors pp. Sari Tulander CFO FURTHER INFORMATION: Managing Director, Markku E. Rentto, tel. +358 207 209 190 Sari Tulander, CFO, tel. +358 207 209 192 DISTRIBUTION NASDAQ OMX Helsinki Main media www.neomarkka.fi
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