2010-11-04 08:30:00 CET
2010-11-04 08:30:05 CET
REGULATED INFORMATION
Neomarkka - Interim report (Q1 and Q3)
NEO INDUSTRIAL'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 4 November 2010 at 9.30 INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010 New business, Fire Retardant Fibre, acquired to balance the portfolio. The turnover of ongoing businesses increased - the operating result still showing losses KEY FIGURES -------------------------------------------------------------------------------- | | 7-9/ | 7-9/ | 1-9/ | 1-9/ | | | 2010 | 2009 | 2010 | 2009 | -------------------------------------------------------------------------------- | Turnover, EUR million, of which | 20.6 | 17.7 | 59.7 | 52.7 | -------------------------------------------------------------------------------- | - Cable business | 20.6 | 17.7 | 59.7 | 52.7 | -------------------------------------------------------------------------------- | - Fire Retardant Fibre | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | - Other operations | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Operating result, EUR million, of | 0.1 | -1.9 | -3.9 | -2.8 | | which | | | | | -------------------------------------------------------------------------------- | - Cable business | 0.7 | -1.2 | -2.7 | -1.8 | -------------------------------------------------------------------------------- | - Fire Retardant Fibre | -0.3 | 0.0 | -0.3 | 0.0 | -------------------------------------------------------------------------------- | - Other operations | -0.3 | -0.7 | -0.9 | -1.0 | -------------------------------------------------------------------------------- | Profit or loss for the period, EUR | -0.7 | -1.2 | -4.3 | -2.5 | | million | | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR | -0.08 | -0.19 | -0.69 | -0.40 | -------------------------------------------------------------------------------- | ROI, % | | | -3.8 | -1.2 | -------------------------------------------------------------------------------- | Equity ratio, % | | | 38.7 | 49.5 | -------------------------------------------------------------------------------- The low amount of started industrial investments in Western markets and tight competition within EU-area effect still the result. In Russia the demand of cable business developed positively. However, the break down of testing machinery at Riihimäki factory in June decreased substantially the delivery ability of the factory. This meant that the market situation in Russia could not be benefited fully. The turnover of Cable business increased compared both to earlier Interim period as well to the previous year. However, the growth of turnover mainly consisted of the deliveries of the factories in Russia. Because of the machinery break down the deliveries from factories in Finland remained to the level of previous year. Some of the factories still have too low production volume level to produce cost efficiently. The increased raw material prices could not be passed totally to the sales prices. Therefore, despite the increased turnover the operating result for the period showed red figures. In April Neo Industrial invested on 30% share of prefabricated small house manufacturer Finndomo Ltd. This investment created a new segment in Neo Industrial's financial reporting; Single Family House Industry. The new segment is included in Neo Industrial's figures from May 2010 onwards. The investments according to the Strategy continued. On July Neo Industrial signed a Letter of Intent and on September the contracts to acquire the Fibre Plant in Valkeakoski and needed production facilities for start up such as property, estate and immaterial rights. The total investment is around EUR 10 million. The solution created new segment to Neo Industrial; Fire Retardant Fibre. New segment is reported in the figures of Neo Industrial starting September 2010. According to its strategy Neomarkka has turned into industrial Group. Therefore the Board of Directors made a proposal in September to change the company name to be Neo Industrial. New name describes better the activities of the parent company in multidisciplinary industrial group. The Extraordinary Shareholders' Meeting accepted the proposal. New name - Neo Industrial - was registered to the Trade Register on 25 October 2010. TURNOVER The turnover of the Group in January - September totalled to EUR 59.7 million (EUR 52.7 million). The growth compared to previous year was 13%. FINANCIAL RESULT, BALANCE SHEET AND FINANCING This report has been drawn up in accordance with IAS 34 requirements for interim reports. The same principles have been followed as in the financial statement for 2009 except for changes in IAS and IFRS standards in effect for financial periods beginning 1 January 2010. The interim report is unaudited. Of new amendments the most significant one was in IAS 27, according to which a minority share is recognized on the result from January 1, 2010 onwards regardless of the subsidiary's shareholder's equity situation. The effects of exchange rate changes on long-term intra-group loans are handled as translation differences in the Consolidated Statement of Comprehensive Income and in the Statement of Shareholders' Equity in accordance with IAS 1. Financial Result The operating loss in the period was EUR -3.9 million (EUR -2.8 million), of which the Cable business generated EUR -2.7 million (EUR -1.8 million) and Fire Retardant Fibre generated EUR -0.3 million. Net result of the review period was EUR -4.3 million (EUR -2.5 million). Earnings per share were EUR -0.69 (EUR -0.40). Consolidated Balance Sheet and financing In the consolidated balance sheet, total assets at the end of the period were EUR 105.5 million (EUR 94.1 million). At the end of the period, net assets per share were EUR 6.66 (EUR 7.54) and the equity ratio was 38.7% (49.5%). Neo Industrial has temporarily had tight liquidity due to the investments and efforts made to start the production of Avilon Ltd and the multiplicity of the related financing arrangements. The liquidity of Cable business has also been tight due to the strong increase of metal prices, decrease of sales margin due to the strong competition situation and due to the break down of testing machinery in Riihimäki factory. For financing of working capital, Reka Cables has revolving bank credit of EUR 6.0 million and factoring credit of EUR 7.5 million. On 30 September 2010, the company's factoring limit was nearly in full use. Close to EUR one million was unused of the revolving bank credit. MAJOR EVENTS DURING THE REVIEW PERIOD Cable business The turnover from cable business operations increased by 13% compared to correspondent period in 2009 and was EUR 59.7 million (EUR 52.7 million). Compared the third quarter figures 2010 and 2009 the increase is EUR 2.3 million. Most of the sales growth generated from deliveries form Russian factories to Russian markets and the growth in demand of installation cables made in Keuruu factory. The break down of testing machinery at Riihimäki factory in June decreased substantially the delivery ability of the medium and high voltage products. The deliveries from factories in Finland remained to the level of previous year. Temporal solution for testing cables was delivered to Riihimäki factory at the end of September. This enabled the testing and delivering of cables. The estimated effect on the margin due to the lost sales and additional costs was EUR 2.1 million in the third quarter. The Group has insurance for interruptions. Therefore the loss of margin has entered as indemnity in the result. The procedure regarding insurance and the evaluation of the total damage is still ongoing. The receivable regarding indemnity has entered using the own evaluation of the company. The final indemnity will be confirmed when the procedure evaluating total damage and the insurance handling has been finished. Operating result was weaker than on the review period year ago. The amount of industrial investments continued to stay on low level during the period and the awaited growth on cable demand followed by the positive economic situation in EU-area, still remained to be materialized in the traditional main market areas in Nordic Countries. Raw material prices were on considerably higher level than on the review period year ago. Due to the tough competition, the corresponding rise could not be passed on the sales prices. Some of the factories still have too low production volume level to produce cost efficiently. The result of the review period is also depressed by the EUR 0.6 million non-recurring costs from the transfer of production equipment needed in copper wire production. Cost savings and other measures to improve profitability have continued in Reka Cables Ltd. Co-determination negotiations concerning the factories in Finland were concluded during the review period and they resulted to lay-offs and total of 15 dismissals. A large restructuring process focusing on centralized production and marketing functions in Russian operations was finalized during the period. This new model improves the practices of Russian units and enables to further develop the operations. Managing Director of Neo Industrial, Markku E. Rentto, started 1.9.2010 as new MD of Reka Cables in addition to his current tasks. Associated company Nestor Cables Ltd's turnover for the period was EUR 22.6 million (EUR 16.2 million). The turnover improved almost 40% compared to the review period last year with the help of recovered demand of fibre optic cables. Operating result for the third quarter 2010 was positive but the operating result for the review period still remained negative. Fire Retardant Fibre New segment - Fire Retardant Fibre - was born to the Group when Neo Industial signed contracts to acquire the Fibre Plant in Valkeakoski and needed production facilities for start up such as property, estate and immaterial rights. The total investment is around EUR 10 million. In addition, Neo Industrial made a long term rental agreement on an area close to the factory where many of the employees live. This total arrangement required a approval of the creditors' meeting of Kuitu Finland Ltd's estate of bankruptcy which was given on 8.9.2010. The name of the new segment describes the emphasis of the new starting activities; manufacturing and delivering fire retardant viscose fibre. The starting business has plenty of market potential subsequent to the increasing fire security regulation regarding mattresses, furnitures and vehicles. The main market is now in United States. Depending on the market situation the factory in Valkeakoski will produce also ordinary viscose rayon fibre to the textile and non woven manufacturers. When the solution was found regarding the production plant, Neo Industrial started the operational and new business start up related actions. The goal is to start the production in Valkeakoski during year 2010. The customer and supplier meetings are related negotiations are going. The preparations relating starting the production machinery as well the recruitment of personnel are in process. At the end of September the amount of personnel was 60. The new company operating in Valkeakoski was named Avilon Ltd according the trade mark to be used in sales. The expenses relating start up of the activity and the factory are entered as costs. By the end of September the costs accurred were EUR 0.3 million. Therefore the operating loss was EUR 0.3 million. Single Family House Industry In April Neo Industrial invested on 30% share of prefabricated small house manufacturer Finndomo Ltd. This investment created a new segment in Neo Industrial's financial reporting; Single Family House Industry. The new segment is included in Neo Industrial's figures from May 2010 onwards. As an associated company, Finndomo's figures will be reported in the Consolidated Income Statement as item “Share of the result of associates” including the share of Finndomo's IFRS converted result (from 1 May 2010) corresponding Neo Industrial's holding of the company and the items resulting from the purchase price allocation. Finndomo's turnover and operating profit are therefore not included in Neo Industrial's turnover and operating profit figures. However, as holding in Finndomo creates a new segment in Neo Industrial's reporting there will be a wider description of the industry than just one line in the Consolidated Income Statement. The turnover of Finndomo Ltd in May-September 2010 was EUR 53.5 million (EUR 42.2 million) which is 27% higher than in review period in 2009. Despite the increase in turnover the high cost structure pressed the result for the period in red figures. Although work has been done to cut the costs and improve operations it was not enough to gain a positive result. Some effects of the made decisions and related activities regarding cost cuttings will be shown only during year 2011. The improvement in market situation of Single Family House Industry has increased Finndomo's order inflow especially in Finland. However, in Sweden similar improvement in the markets has not been seen. Finndomo is also a leading manufacturer in urban area construction business in Finland in addition to consumer sales. On the review period the building and sales of the first housing company in project Myllykylä was started and 85% of the apartments were sold. There are total of 125 apartments in the area of Myllypuro in Helsinki. Finndomo had publicity during the third quarter regarding the drying solutions of the basement. Finndomo has offered its ready house customers the possibility to use expert help when checking the condition of the basement of the house. The inspections were started during the review period and the results will be reported when the checkings has been made. It has not been seen any adverse effect on sales due to the related public conversation. Other operations Neo Industrial's other investments apart from industrial investments are mainly investing cash funds. During the third quarter of the review period Neo Industrial sold all its shares of Find Ltd (totally 81,700 pieces)at price of EUR 14.0 per share. The company has invested in fixed term deposits, direct corporate loans and bonds and as well as bonds with credit risk swaps. The credit risk swaps are valid for under a year and concern financially sound companies. On 30.9.2010 Neo Industrial had no bonds with credit risk swaps on the balance sheet. The company has continued to acquire its own shares based on an authorization by the Annual General Meeting on June 10, 2009. On the review period the company acquired total of 26,110 Neo Industrial B series shares. On an authorization by the Annual General Meeting on June 9, 2010 total of 4,360 own shares were acquired. In total the company has acquired 30,470 Neo Industrial B series shares. MAJOR EVENTS AFTER THE REVIEW PERIOD The broken testing machinery of Riihimäki factory has been fixed and got back to the production process. In October the Russian Federation and its customs alliance announced changes to the tolling of metals. The previously possible duty free export of metals outside Russian borders and bringing back of those metals after value added process will not be possible any longer. The removal of tolling-system causes changes to the patterns of the Cable business. The activities regarding the business start up of Fire Retardant Fibre and the related negotiations has been continued. The first company of the Myllykylä - project was completed at the end of October. In October Neo Industrial all of its Oulu ICT Ltd shares (746,250 shares) by share price of EUR 3.70. The Extraordinary Shareholders' Meeting decided to change the company name according to the proposal made by the Board of Directors. The change of the company name was registered to the Trade Register on 25 October 2010. Neomarkka Plc is now Neo Industrial Plc. SHARES AND SHARE CAPITAL Neo Industrial Plc's share capital is divided into A- and B-shares. The total share capital including all shares stood at EUR 24,802,000 at the end of the review period and the total number of shares was 6,020,360. The number of shares includes 91,877 B-shares held by Neo Industrial Group. Neo Industrial Plc's B-share is quoted on the main list of NASDAQ OMX Helsinki Ltd. The closing price on September 30, 2010 was EUR 5.98 (EUR 5.61) and the average share price for the period was EUR 6.57. The closing price on 31 December 2009 was EUR 6.85. The share turnover in the review period was 334,444 shares (175,563), which was 5.7% (2.9%) of listed B-shares. The lowest quotation during the period was EUR 5.46 (EUR 4.45) and the highest quotation was EUR 8.20 (EUR 6.70). On 30 September 2010 the market capitalisation of the company was EUR 35.5 million (EUR 33.7 million). ACQUISITION OF OWN SHARES The Board of Directors has used the authorization granted by the AGM on June 10, 2009 and and June 9, 2010 and acquired 30,470 Neo Industrial Plc's B-shares during the review period for EUR 212,226.15. The value of the shares on September 30, 2010 calculated using the closing price was EUR 182,210.60. The holding corresponds with 1.5% of the company's share capital and 1.1% of votes. INVESTMENTS Investments made in the Cable business on the review period totalled EUR 4.4 million (EUR 2.0 million). In addition Neo Industrial made a EUR 6 million investment on 30% share of prefabricated small house manufacturer Finndomo Ltd. At the end of September 2010 as investment to the Fire Retardant Fibre business EUR 8.1 million was entered to the books. Long-term leases have been recognised as fixed assets in line with IFRS. ANNUAL GENERAL MEETING AND CORPORATE GOVERNANCE Neo Industrial Plc's Annual General Meeting will be held on June 9, 2010 at Hyvinkää. Annual General Meeting (AGM) adopted the accounts for 2009 and granted the Company's Board of Directors and Managing Director discharge from responsibility for the period. The AGM approved the proposal by the Board of Directors that a dividend of EUR 0.25 per share will be distributed on the company's A and B shares for the year 2008. The AGM approved the proposed annual remuneration and bonus of the Board of Directors and committees. The AGM approved the proposal that the number of members of the Board of Directors shall be six (6) and nominated the following persons be re-elected to the Board of Directors: chairman Matti Lainema, deputy chairman Pekka Soini and the members Ilpo Helander, Risto Kyhälä, Matti Lappalainen and Taisto Riski. No deputy members were elected. The AGM approved the proposal that Authorized Public Accountants Ernst & Young Ltd, with Authorized Public Accountant Heikki Ilkka as responsible auditor, be elected as the auditor of the company for a term that expires at the end of the Annual General Meeting of 2010. The AGM approved the Board of Directors proposal that it be authorized to decide on acquisition of the company's own shares and to decide on an issue of new class B shares and on a transfer of class B treasury shares held by the company either against or without payment. The Board of Directors may also decide on a share issue to the company itself without payment. The authorizations will be in force until the next Annual General Meeting. The AGM approved the Board of Directors proposal to change the Company's Articles of Association on sections 3 § Field of operations, 9 § Representing the Company, 13 § Shareholders' meeting and 14 § Invitation to the shareholders' meeting. The Extraordinary Shareholders meeting approved the proposal of the Board of Directors to change the company name and the Company´s Articles of Association on section 1 §. New company name Neo Industrial was registered to the Trade Register on 25 October, 2010. The Board has appointed its members Taisto Riski, Pekka Soini and Ilpo Helander as members of its new audit committee. The managing director of Neo Industrial Plc is Markku E. Rentto. PERSONNEL The Group employed an average 567 people (505). On 30 September 2010 Group personnel numbered 572, of whom 510 were in the Cable business and 60 in the Fire Retardant Fibre business. GROUP STRUCTURE AND SHAREHOLDERS Neo Industrial Plc is the parent company in a Group consisting of Neo Industrial's fully owned subsidiaries Novalis Plc and Alnus Ltd and their subsidiaries and associated companies. The domicile of the parent company is Hyvinkää. On September 30, 2010, Neo Industrial Plc had 12,505 (12,685) shareholders. The company's largest shareholder, Reka Ltd had a 50.76% (50.76%) holding of shares and 60.77% (60.77%) of votes at the end of the review period. Thus Neo Industrial Plc is part of Reka Group. Reka Ltd is domiciled in Hyvinkää. At the end of the review period, the combined holding of the ten largest shareholders was 61.3% of shares (60.6%) and 73.1% of votes (72.6%). NEAR-TERM RISKS AND HEDGING MEASURES Neo Industrial's main financial risks are currency, interest rate, commodity, liquidity, credit and investment market-risks. The financial risks and their hedging measures are described in more details in the notes to the Consolidated Financial Statements 2009. The company's future risk factors are tied to the development of business operations of its segments. The most significant risks in the Cable business relate to changes in market conditions, fluctuating raw material prices and exchange rate movements. Increased metal prices and the increase of the volume in operations increase the need of operative working capital. This together with strong periodical fluctuations in the market brings pressure to manage the liquidity. The most significant risks in the Single Family House industry relate to competition and demand of the markets, the level of production capacity utilization and changes in the raw material prices. Fire Retardant Fibre is a new business facing the risks of starting activities. The most significant risks of the industry related to the development of the market and competitor conditions, exchange rate movements and both the price fluctuations and availability of the raw materials. The most important raw material is dissolving pulp. In 2009, Audit Committee was focusing on risks on business operations in Russia by initiating a risk assessment. The results of the assessment will be utilized in 2010 internal audit. The company believes that the Russian cable market will grow and develop, and has made substantial investments to exploit business opportunities there. The investments contain the risk that growth in Russia will not live up to expectations. NEAR TERM OUTLOOK The turnover of Cable business is expected to increase both in Russia and Nordic Countries on the latter part of the year. We believe that the full year result of the Cable business will be better than in 2009. The market conditions in the Single Family House Industry is expected to continue positive. The good order book gives good preconditions for a significantly better, however still negative result compared to last year. The production of Valkeakoski special fibre plant will start its activities during this year. The first deliveries of fire retardant fibre are planned to deliver in December. Because the start up expenses entered as costs are big related to the deliveries starting in December, will the result of the segment be red figures in 2010. SUMMARISED FINANCIAL STATEMENT AND NOTES CONSOLIDATED INCOME STATEMENT (IFRS) -------------------------------------------------------------------------------- | EUR 1,000 | 1.7. - | 1.7. - | 1.1. - | 1.1. - | | | 30.9.2010 | 30.9.2009 | 30.9.2010 | 30.9.2009 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | TURNOVER | 20 596 | 17 736 | 59 680 | 52 707 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Change in inventories of | 781 | -663 | -1 570 | -67 | | finished products and | | | | | | production in progress | | | | | -------------------------------------------------------------------------------- | Production for own use | 3 | 18 | 31 | 26 | -------------------------------------------------------------------------------- | Materials and services | -15 388 | -11 497 | -41 183 | -31 767 | -------------------------------------------------------------------------------- | Personnel expenses | -3 465 | -3 358 | -10 170 | -11 028 | -------------------------------------------------------------------------------- | Depreciation and impairment | -1 611 | -1 034 | -3 580 | -3 500 | -------------------------------------------------------------------------------- | Other operating income and | -794 | -3 057 | -7 074 | -9 122 | | expenses | | | | | -------------------------------------------------------------------------------- | | -20 472 | -19 591 | -63 546 | -55 458 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Operating profit or loss | 123 | -1 855 | -3 866 | -2 751 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Financial income | 232 | 900 | 1 511 | 1 998 | -------------------------------------------------------------------------------- | Financial expenses | -272 | -138 | -1 773 | -1 464 | -------------------------------------------------------------------------------- | Share of the result of | -388 | 0 | -647 | -202 | | associates | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit or loss before taxes | -304 | -1 092 | -4 775 | -2 418 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Taxes | -381 | -106 | 497 | -46 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit or loss for the | -686 | -1 198 | -4 277 | -2 464 | | period | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit or loss attributable | | | | | | to | | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | -499 | -1 162 | -4 105 | -2 389 | -------------------------------------------------------------------------------- | Minority interests | -186 | -36 | -172 | -75 | -------------------------------------------------------------------------------- | | -686 | -1 198 | -4 277 | -2 464 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Earnings per share attributable to the | | | | | shareholders of the parent (EUR) | | | | -------------------------------------------------------------------------------- | before and after dilution, | -0.08 | -0.19 | -0.69 | -0.40 | | EUR | | | | | -------------------------------------------------------------------------------- | Number of shares | 5 928 483 | 6 014 476 | 5 928 483 | 6 014 476 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF COMPREHENSIVE | | | | | INCOME (IFRS) | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit or loss | -686 | -1 198 | -4 277 | -2 464 | -------------------------------------------------------------------------------- | Other comprehensive items | | | | | -------------------------------------------------------------------------------- | Translation differences | -739 | 73 | 1 340 | -730 | | related to foreign units | | | | | -------------------------------------------------------------------------------- | Direct book entry to equity | 0 | -38 | 0 | -48 | -------------------------------------------------------------------------------- | Total | -739 | 35 | 1 340 | -778 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Total comprehensive income | -1 425 | -1 163 | -2 937 | -3 242 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Total comprehensive income | | | | | | attributable to | | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | -1 238 | -1 127 | -2 711 | -3 153 | -------------------------------------------------------------------------------- | Minority interest | -186 | -36 | -226 | -89 | -------------------------------------------------------------------------------- | | -1 425 | -1 163 | -2 937 | -3 242 | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (IFRS) -------------------------------------------------------------------------------- | EUR 1,000 | 30.9.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Goodwill | 3 392 | 3 520 | -------------------------------------------------------------------------------- | Other intangible assets | 7 811 | 6 794 | -------------------------------------------------------------------------------- | Tangible assets | 41 981 | 32 978 | -------------------------------------------------------------------------------- | Holdings in associates | 5 353 | 0 | -------------------------------------------------------------------------------- | Receivables | 88 | 0 | -------------------------------------------------------------------------------- | Derivative contracts | 97 | 55 | -------------------------------------------------------------------------------- | Deferred tax assets | 880 | 909 | -------------------------------------------------------------------------------- | Total non-current assets | 59 604 | 44 257 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | 16 447 | 21 085 | -------------------------------------------------------------------------------- | Available-for-sale financial assets | 2 813 | 3 733 | -------------------------------------------------------------------------------- | Sales receivables and other | 20 530 | 15 431 | | receivables | | | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Tax receivables from the profit | 882 | 131 | -------------------------------------------------------------------------------- | Derivative contracts | 925 | 1 170 | -------------------------------------------------------------------------------- | Other financial assets | 104 | 7 016 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 4 156 | 3 000 | -------------------------------------------------------------------------------- | Total current assets | 45 858 | 51 566 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Total Assets | 105 461 | 95 823 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Shareholder's equity | | | -------------------------------------------------------------------------------- | Share capital | 24 082 | 24 082 | -------------------------------------------------------------------------------- | Premium fund | 67 | 66 | -------------------------------------------------------------------------------- | Reserve fund | 1 221 | 1 221 | -------------------------------------------------------------------------------- | Own shares | -594 | -381 | -------------------------------------------------------------------------------- | Translation differences | -673 | -2 013 | -------------------------------------------------------------------------------- | Retained profit | -5 929 | -309 | -------------------------------------------------------------------------------- | Other unrestricted equity | 21 327 | 21 327 | -------------------------------------------------------------------------------- | Equity attributable to sharehoders of | 39 501 | 43 992 | | the parent | | | -------------------------------------------------------------------------------- | Minority interest | 1 277 | 1 445 | -------------------------------------------------------------------------------- | Total shareholders´ equity | 40 778 | 45 437 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 3 969 | 4 012 | -------------------------------------------------------------------------------- | Provisions | 817 | 650 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 27 494 | 18 472 | -------------------------------------------------------------------------------- | Interest-free liabilities | 1 584 | 0 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Tax liabilities from the profit | 347 | 46 | -------------------------------------------------------------------------------- | Reserves | 0 | 176 | -------------------------------------------------------------------------------- | Short-term interest-bearing | 15 771 | 10 432 | | liabilities | | | -------------------------------------------------------------------------------- | Derivative contracts | 53 | 32 | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 14 648 | 16 568 | -------------------------------------------------------------------------------- | Total liabilities | 64 684 | 50 386 | -------------------------------------------------------------------------------- | Shareholders´ equity and liabilities | 105 462 | 95 823 | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY (IFRS) A = Share capital B = Premium fund C = Reserve fund D = Translation differences E = Other unrestricted equity F = Retained profit G = Minority interest -------------------------------------------------------------------------------- | EUR 1,000 | A | B | C | D | E | F | Total | G | Total | | | | | | | | | | | share- | | | | | | | | | | | holders | | | | | | | | | | | ' | | | | | | | | | | | equity | -------------------------------------------------------------------------------- | Sharehold | 24 | 66 | 1 | -1 | 21 | 5 | 50 104 | 159 | 50 263 | | ers´ | 082 | | 221 | 683 | 327 | 091 | | | | | equity | | | | | | | | | | | 31.12.200 | | | | | | | | | | | 8 | | | | | | | | | | -------------------------------------------------------------------------------- | Translati | | | | -73 | | 0 | -730 | | -730 | | on | | | | 0 | | | | | | | differenc | | | | | | | | | | | es | | | | | | | | | | -------------------------------------------------------------------------------- | Profit/lo | | | | | | -2 | -2 438 | -76 | -2 514 | | ss for | | | | | | 438 | | | | | the | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -1 | -1 504 | | -1 504 | | paid | | | | | | 504 | | | | -------------------------------------------------------------------------------- | Acquisiti | | | | | | -38 | -38 | | -38 | | on of own | | | | | | | | | | | shares | | | | | | | | | | -------------------------------------------------------------------------------- | Minority | | | | | | | 0 | -26 | -26 | | interest | | | | | | | | | | -------------------------------------------------------------------------------- | Sharehold | 24 | 66 | 1 | -2 | 21 | 1 | 45 394 | 57 | 45 452 | | ers´ | 082 | | 221 | 413 | 327 | 111 | | | | | equity | | | | | | | | | | | 30.9.2009 | | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR 1,000 | A | B | C | D | E | F | Total | G | Total | | | | | | | | | | | share- | | | | | | | | | | | holders | | | | | | | | | | | ' | | | | | | | | | | | equity | -------------------------------------------------------------------------------- | Sharehold | 24 | 66 | 1 | -2 | 21 | -690 | 43 993 | 1 | 45 437 | | ers´ | 082 | | 221 | 013 | 327 | | | 445 | | | equity | | | | | | | | | | | 31.12.200 | | | | | | | | | | | 9 | | | | | | | | | | -------------------------------------------------------------------------------- | Translati | | | | 0 | | | 0 | | 0 | | on | | | | | | | | | | | differenc | | | | | | | | | | | es | | | | | | | | | | -------------------------------------------------------------------------------- | Profit/lo | | 1 | | 1 | | -4 | -2 737 | -226 | -2 963 | | ss for | | | | 340 | | 078 | | | | | the | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -1 | -1 483 | | -1 483 | | paid | | | | | | 483 | | | | -------------------------------------------------------------------------------- | Acquisiti | | | | | | -213 | -213 | | -213 | | on of own | | | | | | | | | | | shares | | | | | | | | | | -------------------------------------------------------------------------------- | Minority | | | | | | -59 | -59 | 59 | 0 | | interest | | | | | | | | | | -------------------------------------------------------------------------------- | Sharehold | 24 | 67 | 1 | -67 | 21 | -6 | 39 501 | 1 | 40 778 | | ers´ | 082 | | 221 | 3 | 327 | 523 | | 277 | | | equity | | | | | | | | | | | 30.9.2010 | | | | | | | | | | -------------------------------------------------------------------------------- STATEMENT OF CASH FLOWS (IFRS) -------------------------------------------------------------------------------- | EUR 1,000 | 1.1. - | 1.1. - | | | 30.9.2010 | 30.9.2009 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Cash flows from operating activities | | | -------------------------------------------------------------------------------- | Payments received from operating activities | 55 930 | 52 134 | -------------------------------------------------------------------------------- | Payments paid on operating activities | -56 623 | -54 469 | -------------------------------------------------------------------------------- | Paid interests and other financial expenses | -836 | -2 305 | -------------------------------------------------------------------------------- | Interests received and other financial | 473 | 521 | | incomes | | | -------------------------------------------------------------------------------- | Direct taxes paid | -35 | 1 394 | -------------------------------------------------------------------------------- | Net cash provided by operating activities | -1 092 | -2 725 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Cash flows from investing activities | | | -------------------------------------------------------------------------------- | Acquisition of subsidiaries and new business | -6 146 | -11 | -------------------------------------------------------------------------------- | | 0 | 1 200 | -------------------------------------------------------------------------------- | Investments in tangible assets | -2 950 | -2 291 | -------------------------------------------------------------------------------- | Sales of tangible assets | 0 | 84 | -------------------------------------------------------------------------------- | Investments in intangible assets | -324 | 0 | -------------------------------------------------------------------------------- | Proceeds from available-for-sale financial | 224 | 0 | | assets | | | -------------------------------------------------------------------------------- | Proceeds from sale of other financial assets | 6 912 | 0 | -------------------------------------------------------------------------------- | Loans granted | -324 | -4 970 | -------------------------------------------------------------------------------- | Net cash provided by investing activities | -2 608 | -5 988 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Cash flows from financing activities | | | -------------------------------------------------------------------------------- | Acquisition of own shares | -207 | -33 | -------------------------------------------------------------------------------- | Increase in loans | 7 762 | 1 142 | -------------------------------------------------------------------------------- | Decrease in loans | -867 | -5 509 | -------------------------------------------------------------------------------- | Payments of finance lease activities | -445 | -562 | -------------------------------------------------------------------------------- | Dividends paid | -1 483 | -1 504 | -------------------------------------------------------------------------------- | Net cash provided by financing activities | 4 760 | -6 465 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Change in cash and cash equivalents | 1 060 | -15 178 | -------------------------------------------------------------------------------- | Cash and cash equivalents at beginning of the | 3 000 | 22 319 | | period | | | -------------------------------------------------------------------------------- | Exchange rate differences | 96 | -48 | -------------------------------------------------------------------------------- | Change in cash and cash equivalents at the | 4 156 | 7 092 | | end of the period | | | -------------------------------------------------------------------------------- NOTES This report has been drawn up in accordance with IAS 34 requirements for interim reports. PRINCIPLES USED The interim report applies the same principles as in the financial statement for 2009 except for changes in IAS and IFRS standards in effect for financial periods beginning 1 January 2010 and later. Of new amendments the most significant one was in IAS 27, according to which a minority share is recognized on the result from January 1, 2010 onwards regardless of the subsidiary's shareholder's equity situation. SEGMENT INFORMATION -------------------------------------------------------------------------------- | 30.9.2010 | Cable | Fire | Single | Eliminatio | Group | | | business | Retardant | Family | ns and | total | | | | Fibre | House | balancing | | | | | | industry | | | | | | | and other | | | | | | | operations | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | | -------------------------------------------------------------------------------- | Turnover | 59 680 | 0 | 0 | 0 | 59 680 | -------------------------------------------------------------------------------- | Segment's | -2 676 | -287 | 0 | 0 | -2 963 | | operating | | | | | | | profit | | | | | | -------------------------------------------------------------------------------- | Unallocated | 0 | 0 | -903 | | -903 | | items | | | | | | -------------------------------------------------------------------------------- | Operating | -2 676 | -287 | -903 | | -3 866 | | profit | | | | | | -------------------------------------------------------------------------------- | Share of the | | | -646 | | -646 | | result of | | | | | | | associates | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | | 235 | 235 | | items | | | | | | -------------------------------------------------------------------------------- | Profit or | | | | | -4 277 | | loss for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Assets | | | | | | -------------------------------------------------------------------------------- | Segment's | 83 951 | 8 750 | | 0 | 92 701 | | assets | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | 14 662 | -1 903 | 12 759 | | assets | | | | | | -------------------------------------------------------------------------------- | Total assets | 83 951 | 8 750 | 14 662 | -1 903 | 105 461 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Liabilities | | | | | | -------------------------------------------------------------------------------- | Segment's | 57 446 | 6 495 | 4 400 | | 68 340 | | liabilities | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | 11 203 | -14 859 | -3 656 | | liabilities | | | | | | -------------------------------------------------------------------------------- | Total | 57 446 | 6 495 | 15 603 | -14 859 | 64 684 | | liabilities | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Assets - | 26 505 | 2 256 | -940 | 12 956 | 40 777 | | liabilities | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Investments | 4 383 | 8 090 | 0 | 0 | 12 473 | -------------------------------------------------------------------------------- | Depreciations | -3 562 | -17 | 0 | 0 | -3 579 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | 30.9.2009 | Cable | Fire | Single | Eliminatio | Group | | | business | Retardant | Family | ns and | total | | | | Fibre | House | balancing | | | | | | industry | | | | | | | and other | | | | | | | operations | | | -------------------------------------------------------------------------------- | EUR 1,000 | | | | | | -------------------------------------------------------------------------------- | Turnover | 52 707 | 0 | 61 | -61 | 52 707 | -------------------------------------------------------------------------------- | Segment's | -1 745 | 0 | | | -1 745 | | operating | | | | | | | profit | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | -1 006 | 0 | -1 006 | | items | | | | | | -------------------------------------------------------------------------------- | Operating | -1 745 | 0 | -1 006 | | -2 751 | | profit | | | | | | -------------------------------------------------------------------------------- | Share of the | -202 | | | | -202 | | result of | | | | | | | associates | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | | 489 | 489 | | items | | | | | | -------------------------------------------------------------------------------- | Profit or | | | | | -2 464 | | loss for the | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Assets | | | | | | -------------------------------------------------------------------------------- | Segment's | 79 385 | 0 | | 0 | 79 385 | | assets | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | 15 462 | -734 | 14 728 | | assets | | | | | | -------------------------------------------------------------------------------- | Total assets | 79 385 | 0 | 15 462 | -734 | 94 113 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Liabilities | | | | | | -------------------------------------------------------------------------------- | Segment's | 52 690 | 0 | | | 52 690 | | liabilities | | | | | | -------------------------------------------------------------------------------- | Unallocated | | | 12 166 | -17 322 | -5 156 | | liabilities | | | | | | -------------------------------------------------------------------------------- | Total | 52 690 | 0 | 12 166 | -17 322 | 47 534 | | liabilities | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Assets - | 26 695 | 0 | 3 296 | 16 588 | 46 579 | | liabilities | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Investments | 2 034 | 0 | 0 | 0 | 2 034 | -------------------------------------------------------------------------------- | Depreciations | -3 499 | 0 | 0 | 0 | -3 499 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cable business turnover per product group | 1-9/2010 | 1-9/2009 | -------------------------------------------------------------------------------- | LV energy | 20.6 | 20.4 | -------------------------------------------------------------------------------- | Power cable | 39.1 | 32.3 | -------------------------------------------------------------------------------- | Total | 59.7 | 52.7 | -------------------------------------------------------------------------------- | | | | -------------------------------------------------------------------------------- | Cable business turnover per sales area | 1-9/2010 | 1-9/2009 | -------------------------------------------------------------------------------- | EU-countries | 46.9 | 47.2 | -------------------------------------------------------------------------------- | Non-EU-countries | 12.8 | 5.5 | -------------------------------------------------------------------------------- | Total | 59.7 | 52.7 | -------------------------------------------------------------------------------- The three largest customer groups for cable are Onninen, Rexel and Sonepar, each of which accounts for more than 10% of turnover. ASSOCIATES ACQUIRED In April Neo Industrial invested on 30% share of prefabricated small house manufacturer Finndomo Ltd. Below is the purchase price allocation calculation. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EUR 1000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Share of | Fair value and | Fair | | | acquirees | recalculation | value | | | book value | adjustments | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net assets acquired | | | | -------------------------------------------------------------------------------- | Intangible assets | 104 | 4 787 | 4 891 | -------------------------------------------------------------------------------- | Tangible assets | 8 032 | 1 099 | 9 131 | -------------------------------------------------------------------------------- | Inventories | 8 336 | 0 | 8 336 | -------------------------------------------------------------------------------- | Deferred tax receivables | 732 | 3 878 | 4 610 | -------------------------------------------------------------------------------- | Current receivables | 3 986 | 0 | 3 986 | -------------------------------------------------------------------------------- | Cash in hand and at bank | 803 | 0 | 803 | -------------------------------------------------------------------------------- | Available for sale assets | 19 | 1 416 | 1 435 | -------------------------------------------------------------------------------- | Provisions | -10 | 0 | -10 | -------------------------------------------------------------------------------- | Curren liabilities | -12 397 | 0 | -12 397 | -------------------------------------------------------------------------------- | Non-curren liabilities | -18 204 | 0 | -18 204 | -------------------------------------------------------------------------------- | Deferred tax liabilities | -209 | -1 905 | -2 114 | -------------------------------------------------------------------------------- | Total net assets acquired | | | 469 | -------------------------------------------------------------------------------- | Share of the net assets of | | | 469 | | associate | | | | -------------------------------------------------------------------------------- | Goodwill | | | 5 531 | -------------------------------------------------------------------------------- | Total cost of acquisition | | | 6 000 | -------------------------------------------------------------------------------- CHANGE IN NON-CURRENT ASSETS -------------------------------------------------------------------------------- | EUR 1,000 | 01-09 /2010 | 01-12 /2009 | -------------------------------------------------------------------------------- | Book value at the beginning of the period | 32 978 | 34 686 | -------------------------------------------------------------------------------- | Investment | 11 878 | 3 235 | -------------------------------------------------------------------------------- | Decrease | -59 | -1 244 | -------------------------------------------------------------------------------- | Depreciations | -3 089 | -4 067 | -------------------------------------------------------------------------------- | Translation differences | 273 | 368 | -------------------------------------------------------------------------------- | Book value at the end of the period | 41 981 | 32 978 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | 1 000 EUR | 30.9.2010 | 31.12.2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debts with corporate mortgages | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 5 870 | 6 489 | -------------------------------------------------------------------------------- | Granted corporate mortgages | 15 000 | 15 000 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debts with securities or guarantees | | | -------------------------------------------------------------------------------- | Loans from financial institutions | 10 700 | 10 767 | -------------------------------------------------------------------------------- | Loans to others | 5 400 | 0 | -------------------------------------------------------------------------------- | Book value of pledged securities | 25 787 | 25 787 | -------------------------------------------------------------------------------- | Granted guarantees | 16 100 | 10 767 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other collaterals | | | -------------------------------------------------------------------------------- | Gaurantees and payment commitments | 1 238 | 1 058 | -------------------------------------------------------------------------------- | Deposits | 3 000 | 0 | -------------------------------------------------------------------------------- Sales receivables, which were EUR 8.6 million on 30.9.2010 (EUR 3.6 million on 31.12.2009), are surety for factoring credit, which was EUR 7.1 million on 30.9.2010 (EUR 0.4 million on 31.12.2009). INVESTMENT COMMITMENTS Investment commitments on tangible non-current assets were EUR 3.1 million on 30.9.2010 (EUR 0.4 million on 31.12.2009). DERIVATIVE CONTRACTS -------------------------------------------------------------------------------- | EUR 1,000 | Positi | Negativ | Curren | Current | Nomina | Nominal | | | ve | e | t net | net | l | values | | | curren | current | values | values | values | 31.12. | | | t | values | 30.9. | 31.12. | 30.9. | 2009 | | | values | | 2010 | 2009 | 2010 | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Interest rate | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Interest rate | 0 | 0 | 0 | 0 | 0 | 9 800 | | ceiling options | | | | | | | -------------------------------------------------------------------------------- | Currency | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Forward exchange | 0 | -48 | -48 | -32 | 1 545 | 1 500 | | agreements | | | | | | | -------------------------------------------------------------------------------- | Credit | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Credit risk swaps | 0 | 0 | 0 | 78 | 0 | 10 000 | -------------------------------------------------------------------------------- | Raw material | | | | | | | | options | | | | | | | -------------------------------------------------------------------------------- | Metal derivatives | 1 022 | -5 | 1 017 | 1 147 | 4 479 | 3 406 | -------------------------------------------------------------------------------- | Total derivatives | 1 022 | -53 | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Long term derivatives deducted | -------------------------------------------------------------------------------- | Metal | 97 | 0 | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Short-term | 925 | -53 | | | | | | share | | | | | | | -------------------------------------------------------------------------------- Derivatives have been valued using market capitalisation reports published by hierarchy level 2 third parties. Interest rate ceiling options expired in June 2010. RELATED PARTY EVENTS -------------------------------------------------------------------------------- | EUR 1,000 | 1-9/2010 | 1-9/2009 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales | 10 | 26 | -------------------------------------------------------------------------------- | Dividends | -764 | -764 | -------------------------------------------------------------------------------- | Other purchases | -1 098 | -899 | -------------------------------------------------------------------------------- | Other revenues | 14 | 0 | -------------------------------------------------------------------------------- | Interest revenues | 122 | 22 | -------------------------------------------------------------------------------- | Loan receivables | 2 000 | 1 000 | -------------------------------------------------------------------------------- | Sales receivables and other receivables at end | 1 481 | 1 008 | | of the period | | | -------------------------------------------------------------------------------- | Finance leases (activated on the balance sheet) | -10 983 | -8 675 | -------------------------------------------------------------------------------- | Other debts at end of the period | -72 | -23 | -------------------------------------------------------------------------------- Earlier related party events consisted of transactions with Reka Group. Now wider perception has implemented. The figures of previous year have been updated accordingly. Loan receivables consist of short-term corporate loans, which have been made in 2009 after comparing different possibilities to invest cash funds with better revenues than what could be got with temporal bank deposits. Loans have collaterals. AVAILABLE-FOR-SALE FINANCIAL ASSETS -------------------------------------------------------------------------------- | | Book value | Book value | -------------------------------------------------------------------------------- | | 30.9.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | Private equity | | | -------------------------------------------------------------------------------- | Oulu ICT Ltd | 2 813 | 2 813 | -------------------------------------------------------------------------------- | Finda Ltd | | 920 | -------------------------------------------------------------------------------- | Total available-for-sale financial | 2 813 | 3 733 | | assets | | | -------------------------------------------------------------------------------- CALCULATION OF KEY FIGURES Return on investment (ROI) % (Profit before taxes + interest and other financial expenses/ [Balance sheet total - obligatory provisions and non-interest bearing liabilities] (average)) x 100 Equity ratio, % (Shareholders' equity + minority interest minus deferred tax liabilities/ Balance sheet total - advances received) x 100 Earnings per share (EPS), EUR Profit for the period belonging to equity holders of the parent/ Number of shares adjusted for share issues (average) Equity/share, EUR Shareholders´ equity-minority interest minus deferred tax liabilities/ Number of shares adjusted for share issues at the end of the financial period Helsinki 4 November 2010 Neo Industrial Plc Board of Directors Sari Tulander CFO FURTHER INFORMATION: Markku E. Rentto, Managing Director, tel. +358 207 209 191 Sari Tulander, CFO, tel. +358 207 209 192 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. www.neoindustrial.fi Neo Industrial Plc's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought both through dividend flow and an increase in value. Neo Industrial's B shares are listed on the NASDAQ OMX Helsinki main market.
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