STREAMLINED OPERATIONS AND A GOOD MARKET DEMAND BOOSTED ENSTO'S...

INTERIM REPORT 1.1.-30.9.2000 STREAMLINED OPERATIONS AND A GOOD MARKET DEMAND BOOSTED ENSTO´S PROFITS SIGNIFICANTLY Good market demand and streamlined operations boosted Ensto´s profits in the first nine months of 2000. Net sales grew by 12.3% and were 151.1 Meur. Operating profit was 13.1 Meur as compared with 5.0 Meur for the corresponding period last year (+163.1%). This strong development is expected to continue in the last quarter of the current fiscal year as well. HIGHLIGHTS *Net sales grew by 12.3% and were 151.1 Meur. *Consolidated operating profit improved by 163.1% and was 13.1 Meur, which equals 8.7% of net sales. The operating profits of Ensto´s divisions all improved significantly. *Profit before extraordinary items more than tripled and came to 11.8 Meur (3.5 Meur). *Return on investment (ROI) was 19.4% p.a. and return on equity (ROE) 21.3% p.a. *Good market demand, streamlined operations and high capacity utilization were the main drivers behind the profit improvement. *Sormat Oy, a member of the Ensto Group, acquired Finland´s first ETA- approval, based on an EU-directive, for its main product, the fastening anchor. *The contract manufacturing unit in Hungary was transferred to Eimo Oyj at the turn of September-October. CORPORATE STRUCTURE The agreement concluded between Ensto and Eimo Oyj in May transferred the contract manufacturing unit Ensto Plastic Kft in Pecs, Hungary, to Eimo Oyj at the end of September 2000. The final purchase agreement was signed October 2, 2000. Ensto Plastic Kft´s income statement is included in the consolidated figures of this interim report. Ensto Sekko Oy concluded a letter-of-intent on August 30, 2000 to acquire the minority ownership of its subsidiary company in Poland. The deal will become effective as soon as the Polish authorities have approved of the share transaction. Ensto Elektriska AB and Ensto Component AB in Sweden have been merged into Ensto Holding AB. The merger was registered on June 21, 2000. MARKET DEVELOPMENT A high level of construction activity continued to support the good demand for installation products. The high oil price contributed to a growth in the popularity of electrical heating which was reflected in a strong demand in this product group throughout the summer. At times there was even a shortage of electrical heating equipment. The good demand for utility network construction products continued also during the summer months. The growth rate leveled off somewhat, however, as compared with the first half of the year. The strongest growth was recorded in Poland, Hungary and the Czech Republic. Ensto´s market positions strengthened and stabilized on these markets during the year. Significant structural reorganization has taken place within Ensto´s contract manufacturing units. The machinery from the factory in Hungary, which was sold to Eimo Oyj, was partially transferred to other Group companies, partially sold to outside buyers. The market for enclosures and components have also been strong. The growing operations encountered some signs of raw material shortages. These, however, had no effect on the activities in the reporting period. NET SALES AND RESULTS Consolidated net sales in January-September were 151.1 Meur, which is 12.3% above the corresponding figure for last year. In comparable terms net sales grew by 19.4%. Finland acccounted for 66.3 Meur, or 43.9% of net sales. Direct exports from Finland were 40.3 Meur, i.e. 26.7% of net sales. The combined share of the other Nordic countries was 40.2 Meur, i.e. 26.6%. The activities in Eastern and Central Europe continued to grow strongly and these markets now accounted for 14.6% of consolidated net sales (13.2%). ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/10/30/20001030BIT00340/bit0001.doc The full report http://www.bit.se/bitonline/2000/10/30/20001030BIT00340/bit0002.pdf The full report