Exel Oyj's interim report January 1 - March 31, 2008
EXEL OYJ INTERIM REPORT 2 May 2008 at 1.30 pm 1 (13)
EXEL INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2008
Summary
- Net sales decreased to EUR 24.1 (28.8) million or in the first quarter of 2008
or were 16% lower than for the corresponding period in 2007
- Operating profit was EUR 1.4 million compared to EUR 3.5 million in the first
quarter of 2007, representing 5.6% (12.2%) of net sales
- Weaker market conditions in Exel Composites resulted in a decline in operating
profit to EUR 2.9 (4.3) million
- Unsatisfactory performance in Exel Sports Brands continued, with an operating
loss of EUR -1.4 (-0.7) million
- Fully diluted earnings per share were EUR -0.01 (0.19)
- Agreement signed after the reporting period to transfer of the outdoor
business of Exel Sports Brands to Karhu Sports
- For the full-year 2008, the profit before taxes is expected to be negative for
the Group
Vesa Korpimies, President and CEO:
“The reduction in sales and increased price competition had a negative impact on
the operating profit in Exel Composites during the first quarter. Weaker sales
were mainly due to changes in procurement practices in the wind energy segment
and divestment of the Plastics business in Germany. In addition, we faced some
softness in the building and construction segment, where some projects were
delayed.”
“Sales in Exel Sports Brands were in line with our expectations, but lower than
in 2007. Exel Sports Brands continued to suffer from a high cost level causing a
significant operating loss. We have today signed an agreement with Karhu Sports,
one of the leading Finnish sports equipment manufacturers, to transfer the
outdoor business of Exel Sports Brands. The agreement secures the continued
presence and distribution of Exel branded poles in the sports equipment market
in a model that strengthens Exel's profitability. Exel can now sharpen the focus
on its core business, namely Exel Composites.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
--------------------------------------------------------------------------------
| | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 24.1 | 28.8 | -16.4 | 113.5 |
--------------------------------------------------------------------------------
| Operating profit | 1.3 | 3.5 | -62.1 | 4.8 |
--------------------------------------------------------------------------------
| % of net sales | 5.6 | 12.2 | | 4.2 |
--------------------------------------------------------------------------------
| Profit for the period | -0.1 | 2.3 | -104.0 | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 23.1 | 26.6 | -13.2 | 23.5 |
--------------------------------------------------------------------------------
| Net interest-bearing | 28.4 | 29.5 | -3.5 | 27.9 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 55.9 | 61.9 | -9.7 | 56.3 |
--------------------------------------------------------------------------------
| Return on equity, % | -1.6 | 36.2 | | 8.4 |
--------------------------------------------------------------------------------
| Return on capital | 2.6 | 24.3 | | 7.3 |
| employed, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 30.9 | 31.7 | | 31.3 |
--------------------------------------------------------------------------------
| Net gearing, % | 123.3 | 110.9 | | 118.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.01 | 0.19 | -104.0 | 0.17 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | -0.01 | 0.19 | -104.0 | 0.17 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.98 | 2.23 | -11.2 | 1.98 |
--------------------------------------------------------------------------------
IFRS REPORTING
Exel has applied IFRS reporting since the beginning of 2005. This interim report
has been prepared in accordance with the recognition and measurement principles
of IFRS, which are the same as in the 2007 financial statements.
FINANCIAL PERFORMANCE
Exel's consolidated net sales for the first quarter in 2008 decreased by 16% to
EUR 24.1 (28.8) million compared to the corresponding period in 2007. The weaker
sales were primarily a result of a decrease in sales in the wind energy segment
and the divestment of the Plastics business in Germany. Moreover, the Company is
also faced with weaker market conditions in other segments, especially in
building and construction. This was partly due to the delay of start-up of new
building projects. Exel Sports Brands' cross-country and alpine products sales
suffered from another mild winter and stiff competition.
Exel's operating profit for the first quarter in 2008 decreased to EUR 1.4 (3.5)
million, compared to the corresponding period last year. Operating profit as a
percentage of net sales was 6.0% (12.2%). The reduction in sales and increasing
price competition had a negative impact on the operating profit in Exel
Composites. Furthermore, the operations of Exel Sports Brands continued to
suffer from a high cost level and problems with logistics.
The Group's net financial expenses in the first quarter in 2008 were EUR 1.4
(0.3) million. Currency losses due to weakening USD and AUD were the main reason
behind the increase. The Group's profit before taxes was EUR -0.0 (3.2) million
and profit after taxes EUR -0.1 (2.3) million.
Earnings per share were EUR -0.01 (0.19). Return on capital employed was 2.6%
(24.3%).
BALANCE SHEET
The Group's consolidated total assets at the end of the reporting period were
EUR 74.7 (84.0) million. Equity was EUR 23.1 (26.6) million and equity ratio
30.9% (31.7%).
CASH FLOW AND FINANCIAL POSITION
Cash flow from business operations in the first quarter was EUR -0.2 (-1.2)
million.
At the end of the reporting period the Group's liquid assets stood at EUR 4.4
(5.9) million, interest-bearing liabilities at EUR 32.9 (35.4) million, of which
short-term liabilities accounted for EUR 13.9 (9.9) million. Net
interest-bearing liabilities were EUR 28.4 (29.5) million and the net gearing
ratio was 123.3% (110.9).
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the review period amounted to EUR
0.3 (0.6) million.
Total depreciation of non-current assets during the period under review amounted
to EUR 0.9 (1.1) million.
PERSONNEL
The number of Exel Group employees on 31 March 2008 was 567 (588), of whom 230
(239) worked in Finland and 337 (349) in other countries. The average number of
personnel during the reporting period was 570 (576).
BUSINESS SEGMENTS
The Group's operations are divided into two primary business segments: Exel
Composites and Exel Sports Brands.
Exel Composites
Exel Composites' key financial figures for the reporting period were as follows:
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change % | 1.1. - |
--------------------------------------------------------------------------------
| | 31.3. | 31.3. | | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 21.8 | 26.7 | -18.5 | 104.3 |
--------------------------------------------------------------------------------
| Operating profit | 2.9 | 4.3 | -32.5 | 15.2 |
--------------------------------------------------------------------------------
| % of net sales | 13.3 | 16.0 | | 14.6 |
--------------------------------------------------------------------------------
| Average number of | 500 | 506 | -1.2 | 500 |
| personnel | | | | |
--------------------------------------------------------------------------------
Net sales for Exel Composites in the first quarter of 2008 decreased by 18.5% to
EUR 21.8 (26.6) million from the corresponding period previous year. The
decrease in sales was primarily a result of lower demand in the wind energy
segment and the divestment of the Plastics business in Germany. Moreover, the
Company also faced weaker market conditions in other segments, especially in
building and construction. This was partly due to the delay of start-up of new
construction projects. The price competition toughened further.
Operating profit decreased to EUR 2.9 (4.3) million. The reduction in sales and
increasing price competition had a negative impact on the operating profit of
Exel Composites.
In March 2008, the Oudenaarde site in Belgium was assessed to meet the ISO 9001
quality standard. The Group certificate now covers units in Austria, Australia,
Belgium, Finland and the UK.
Exel Sports Brands
Exel Sports Brands' key financial figures for the reporting period were as
follows:
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change % | 1.1. - |
--------------------------------------------------------------------------------
| | 31.3. | 31.3. | | 31.12. |
--------------------------------------------------------------------------------
| EUR million | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 3.2 | 3.7 | -14.9 | 13.6 |
--------------------------------------------------------------------------------
| Operating profit | -1.4 | -0.7 | | -10.7 |
--------------------------------------------------------------------------------
| % of net sales | -42.8 | -18.9 | | -78.1 |
--------------------------------------------------------------------------------
| Average number of | 50 | 52 | -3.8 | 49 |
| Personnel | | | | |
--------------------------------------------------------------------------------
Exel Sports Brands' net sales in the first quarter of 2008 decreased by 14.9% to
EUR 3.2 (3.7) from the previous year's level. This was mainly due to another
mild winter. In addition, the operations of Exel Sports Brands continue to
suffer from a high cost level and problems with logistics. The write-downs of
winter poles inventory as well as warehousing and air freight costs had a
negative effect on the result of the first quarter.
Exel Sports Brands' operating loss was EUR -1.4 (0.7) million.
During the first quarter of 2008, a comprehensive turnaround program was
initiated and the supply chain management was reinforced. Despite these actions,
the operative result was still weak and the profit trend negative. Further
measures to increase the speed of the turnaround and structural initiatives were
prioritized.
SHARES AND SHARE CAPITAL
At the end of March, Exel's share capital was EUR 2,141,431.74 and the number of
shares was 11,896,843. There were no changes in the share capital during the
review period.
Based on the closing price on 31 March 2008, the market capitalization totaled
EUR 124.9 (154.7) million. During the reporting period 385,328 (689,368) shares
were traded, accounting for 3.2% (5.8%) of the average number of shares
outstanding.
The highest share quotation was EUR 12.20 (14.00) and the lowest EUR 9.50
(12.50). The share price closed at EUR 10.50 (13.00). The average share price
during the review period was EUR 10.68 (13.23).
DISCLOSURES OF CHANGES IN HOLDINGS
No shareholders' disclosures of changes in holdings in the Company were received
by Exel.
EVENTS AFTER THE REVIEW PERIOD
Vesa Korpimies started as President and CEO of Exel Oyj on 10 April 2008.
The Annual General Meeting of Exel Oyj was held on 10 April 2008. The financial
accounts of the Group were approved and the members of the Board of Directors
and the President were discharged from their liabilities for the financial year
2007. The AGM approved the Board's proposal to distribute a dividend of EUR 0.20
per share. Based on the number of shares outstanding on the date of the AGM,
this corresponds to a total dividend distribution of EUR 2.4 million. The AGM
also authorized Exel's Board of Directors to acquire and convey the Company's
own shares. The AGM also resolved to decrease the company's premium fund by the
amount of EUR 8,487,699.84 and to transfer the amount to the invested
non-restricted equity fund.
The AGM confirmed the number of members of the Board of Directors as five and
elected a new Board. Kari Haavisto, Peter Hofvenstam and Vesa Kainu were
re-elected and Göran Jönsson and Heikki Mairinoja were elected as new members to
the Board. At the organizational meeting of the Board of Directors held after
the AGM, the Board of Directors elected Peter Hofvenstam as Chairman.
Exel previously disclosed Exel Sports Brands no longer being a core activity
within Exel Group. The profit trend of Exel Sports Brands has been negative in
recent years. The Exel Board of Directors has been reviewing structural
alternatives for the Exel Sports Brands and seeking a strategic partner with an
interest in developing the sports equipment business. On 2 May 2008, the Exel
Board passed the following resolutions regarding the restructuring of Exel
Sports Brands.
1. Exel Sports Brands will be divided into two businesses: floorball and
outdoor. The outdoor business consists of cross-country, alpine, Nordic Walking,
trekking and blading poles as well related traded items.
2. Exel will transfer the outdoor business of Exel Sports Brands to Karhu
Sports.
3. The remaining floorball business will be organized as a separate operation
within Exel Group.
4. Provisions related to restructuring of Exel Sports Brands will be included in
the second quarter results for 2008.
Karhu Sports, one of the leading Finnish sports equipment manufacturers will
take over the outdoor business, acquire the inventory and order backlog related
to the outdoor business through an asset deal. Karhu Sports has a strategic
interest in developing the business. The transaction includes a long-term
licensing agreement related to the use of the Exel brand together with other
brands such as Nordic Walker and Nordic Blader for selected product groups. The
employees of the outdoor business in Finland and Germany will be transferred to
Karhu Sports as existing employees. At present, there are 9 employees in Finland
and 18 in Germany.
The business transfer will streamline the business structure of Exel Group and
increase the focus on the core industrial activities. The transaction with Karhu
Sports secures the continued presence and distribution of Exel branded poles in
the sports equipment market in a model that strengthens Exel's profitability.
The parties have agreed not to disclose the transaction value of the business
transfer. A condition precedent for the business transfer to Karhu Sports is
that the consultations related to personnel in Germany are concluded according
to German law. The consultations are expected to be concluded during June 2008.
The remaining floorball business of Exel Sports Brands will be organized as a
separate unit and its operations streamlined. In 2007, the business had a
turnover of some EUR 5 million and it has a leading market position in the
Nordic floorball market. Exel will conduct a strategic review and evaluate
different structural alternatives for the business.
Provisions for restructuring costs will be made in the second quarter of 2008,
and are estimated to be maximum at the level of EUR 7 million. Due to these
provisions, the profit before taxes for the second quarter is expected to be
negative.
A separate stock exchange release regarding the matter was published today 2 May
2008 at 1.30 pm.
NEAR-TERM RISKS
The most significant risks are related to market demand in certain segments of
Exel Composites such as the telecommunication segment and wind energy. Currency
rate changes and intensifying competition may also have a negative effect on the
result. There are also risks related to successful division of the Exel Sports
Brands business including transition period costs, and the conditions precedent
of Exel Sports Brands outdoor deal being met.
OUTLOOK
The global pultrusion market is expected to be affected by a worldwide business
slow-down. Growth opportunities for Exel Composites may be available for example
in transportation and machine industry segments and new applications are
continuously being sought for. The division may, however, have a weak
development in the telecommunications segment due to emerging technologies,
building and construction and infrastructure segments due to slow-down in
building activity, as well as in wind energy business where a change of
procurement practices will impact the sales and profitability negatively. Price
competition has further increased putting pressure on profitability.
In the outlook for 2008 issued in connection with the stock exchange release on
7 April 2008 it was forecast that net sales for the year will be lower than in
2007. The profit before taxes for the Group was expected to be better than in
2007. In 2007, the profit before taxes was EUR 2.4 million.
Provisions for restructuring costs will be made in the second quarter of 2008.
They are estimated to be maximum in the level of EUR 7 million. Due to these
provisions, the profit before taxes for the second quarter is expected to be
negative.
For the full-year 2008, the profit before taxes is expected to be negative for
the Group.
NEWS CONFERENCE
A news conference for investment analysts and the press will be held today 2 May
2008 at 3.00 pm in the Pavilion Cabinet of Scandic Hotel Simonkenttä at
Simonkatu 9, Helsinki, Finland.
Vantaa, 2 May 2008
EXEL OYJ Vesa Korpimies
Board of Directors President and CEO
Further information:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email
vesa.korpimies@exel.net
DISTRIBUTION
OMX Nordic Exchanges Helsinki
Main news media
www.exel.net
Exel is a technology company which designs, manufactures and markets composite
profiles and tubes for industrial applications and sports equipment.
The personnel's expertise and high level of technology play a major role in
Exel's operations. The core of the operations is based on own, internally
developed composite technology, product range based on it and the domination of
selected market segments with a strong quality and brand image. The Company's
growth is based on permanent search of new applications and development in
co-operation with customers. Exel concentrates on niche segments and on
profitable growth. Exel's share is listed in the Small Cap segment of the OMX
Exchanges/Helsinki Nordic list.
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 24,078 | 28,797 | -16.4 | 113,489 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating | 10 | 44 | -77.3 | 854 |
| income | | | | |
--------------------------------------------------------------------------------
| Operating | -21,849 | -24,231 | 9.8 | -103,445 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -902 | -1,084 | 16.8 | -6,118 |
| impairment | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 1,337 | 3,526 | -62.1 | 4,780 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | -1,368 | -340 | -302.4 | -2,360 |
| items | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before tax | -31 | 3,186 | -101.0 | 2,420 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -62 | -882 | 93.0 | -410 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | -92 | 2,304 | -104.0 | 2,010 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | -92 | 2,304 | 0.0 | 2,010 |
| the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0.0 | 0 |
| interest | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.19 | -104.0 | 0.17 |
| share, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per | -0.01 | 0.19 | -104.0 | 0.17 |
| share, EUR, | | | | |
| diluted | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 31.3.2008 | 31.3.2007 | Change | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 9,385 | 10,027 | -642 | 9,627 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,521 | 2,995 | -474 | 2,689 |
--------------------------------------------------------------------------------
| Tangible assets | 14,038 | 18,478 | -4,440 | 14,796 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,987 | 2,340 | 647 | 2,521 |
--------------------------------------------------------------------------------
| Other non-current | 72 | 77 | -5 | 76 |
| assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 29,003 | 33,917 | -4,914 | 29,710 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 22,590 | 22,301 | 289 | 22,155 |
--------------------------------------------------------------------------------
| Trade and other | 18,667 | 21,121 | -2,454 | 18,426 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in | 4,417 | 5,884 | -1,467 | 4,901 |
| hand | | | | |
--------------------------------------------------------------------------------
| Current assets total | 45,674 | 49,306 | -3,799 | 45,482 |
--------------------------------------------------------------------------------
| Non-current assets held | 0 | 746 | -746 | 0 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 74,676 | 83,969 | -9,293 | 75,192 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share premium reserve | 8,492 | 8,492 | 0 | 8,492 |
--------------------------------------------------------------------------------
| Retained earnings | 12,529 | 13,642 | -1,113 | 10,890 |
--------------------------------------------------------------------------------
| Profit for the period | -92 | 2,304 | -2,396 | 2,010 |
--------------------------------------------------------------------------------
| Total equity | 23,070 | 26,579 | -3,509 | 23,533 |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 23,070 | 26,579 | -3,509 | 23,533 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 18,913 | 25,451 | -6,538 | 21,755 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-free | 0 | 0 | 0 | 345 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 1,083 | 888 | 195 | 753 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 13,948 | 9,910 | 4,038 | 11,008 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 17,664 | 21,142 | -3,478 | 17,799 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 51,607 | 57,390 | -5,783 | 51,658 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 74,676 | 83,969 | -9,292 | 75,192 |
| liabilities | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR thousand | Share | Share | Share | Retained | Minority | Total |
| | Capital | Issue | Premium | Earnings | Interest | |
| | | | Reserve | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at 1 | 2,141 | 0 | 8,492 | 13,729 | 0 | 24,363 |
| January 2007 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | 0 | -87 | 0 | -87 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividend | | | | 0 | | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | 2,304 | 0 | 2,304 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 8,492 | 15,946 | 0 | 26,579 |
| 31st March | | | | | | |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 8,492 | 12,900 | 0 | 23,533 |
| 1st January | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Exchange rate | 0 | 0 | 0 | -371 | 0 | -371 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividend | | | | 0 | | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | -92 | 0 | -92 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance at | 2,141 | 0 | 8,492 | 11,957 | 0 | 23,070 |
| 31st March | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2008 | 2007 | | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | -92 | 2,304 | -2,396 | 2,010 |
--------------------------------------------------------------------------------
| Adjustments | 2,544 | 2,283 | 261 | 9,676 |
--------------------------------------------------------------------------------
| Change in working capital | -1,016 | -4,408 | 3,393 | -5,903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 1,436 | 178 | 1,258 | 5,783 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -712 | -610 | -102 | -1,687 |
--------------------------------------------------------------------------------
| Interest received | 32 | 107 | -75 | 137 |
--------------------------------------------------------------------------------
| Other financial items | -624 | 0 | 0 | -388 |
--------------------------------------------------------------------------------
| Income taxes paid | -292 | -883 | 591 | -1,250 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from Operating | -160 | -1,208 | 1,672 | 2,595 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposal of business | 0 | 0 | 0 | 672 |
--------------------------------------------------------------------------------
| Capital expenditure | -319 | -587 | 268 | -2,469 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 0 | 0 | 0 | 1,306 |
| assets | | | | |
--------------------------------------------------------------------------------
| Cash Flow from Investing | -319 | -587 | 268 | -491 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from long-term | 0 | 0 | 0 | 0 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -2,408 | -611 | -1,797 | -1,600 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | 2,500 | 2,185 | 315 | 958 |
--------------------------------------------------------------------------------
| Instalments of finance lease | -97 | -94 | -3 | -381 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | 0 | -2,379 |
--------------------------------------------------------------------------------
| Net Cash Flow from Financing | -5 | 1,480 | -1,485 | -3,402 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | -484 | -315 | 455 | -1,298 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 4,901 | 6,199 | -1,298 | 6,199 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | -484 | -315 | -169 | -1,298 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 4,417 | 5,884 | -1,467 | 4,901 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | I/2008 | IV/2007 | III/2007 | II/2007 | I/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales by segment | | | | | |
--------------------------------------------------------------------------------
| Industry | 21,757 | 24,728 | 25,259 | 27,577 | 26,697 |
--------------------------------------------------------------------------------
| Sport | 3,171 | 3,914 | 3,827 | 2,166 | 3,727 |
--------------------------------------------------------------------------------
| Intra Group sales | -850 | -584 | -1,173 | -1,022 | -1,628 |
--------------------------------------------------------------------------------
| Net sales, total | 24,078 | 28,058 | 27,912 | 28,721 | 28,797 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by | | | | | |
| segment | | | | | |
--------------------------------------------------------------------------------
| Industry | 2,890 | 3,853 | 2,556 | 4,478 | 4,283 |
--------------------------------------------------------------------------------
| Sport | -1,357 | -3,005 | -5,182 | -1,760 | -704 |
--------------------------------------------------------------------------------
| Intra Group items | -196 | -177 | 547 | -56 | -53 |
--------------------------------------------------------------------------------
| Operating profit, | 1,337 | 672 | -2,079 | 2,662 | 3,526 |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial items | -1,368 | -989 | -340 | -190 | -1,368 |
--------------------------------------------------------------------------------
| Profit before taxes | -31 | -317 | -3,186 | 2,472 | -31 |
--------------------------------------------------------------------------------
| Income taxes | -62 | 283 | -882 | -526 | -62 |
--------------------------------------------------------------------------------
| Profit for the | -92 | -34 | -2,304 | 1,946 | -92 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | -0.01 | 0.00 | -0.19 | 0.16 | 0.19 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | -0.01 | 0.00 | -0.19 | 0.16 | 0.19 |
| EUR, diluted | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares, undiluted, | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares, diluted, | | | | | |
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| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
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| Average number of | 570 | 574 | 569 | 566 | 576 |
| personnel | | | | | |
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COMMITMENTS AND CONTINGENCIES
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| EUR thousand | 31.3.2008 | 31.3.2007 | 31.12.2007 |
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| On own behalf | | | |
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| Mortgages | 2,783 | 2,953 | 2,783 |
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| Corporate mortgages | 12,500 | 12,500 | 12,500 |
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| Lease liabilities | | | |
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| - in next 12 months | 514 | 527 | 496 |
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| - in next 1-5 years | 2,106 | 2,254 | 2,205 |
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| Other commitments | 1,027 | 588 | 876 |
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DERIVATIVE FINANCIAL INSTRUMENTS
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| Nominal values | 31.3.2008 | 31.3.2007 | 31.12.2007 |
| EUR thousand | | | |
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| Foreign exchange derivatives | | | |
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| Forward contracts | 556 | 8,269 | 8,372 |
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| Purchased currency options | 5,026 | 3,038 | 5,078 |
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| Sold currency options | 3,607 | 1,898 | 4,297 |
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| Currency swaps | 0 | 0 | 1,617 |
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| Interest rate derivatives | | | |
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| Interest rate swaps | 250 | 777 | 333 |
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| Purchased interest rate options | 4,667 | 4,667 | 4,667 |
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CONSOLIDATED KEY FIGURES
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| EUR thousand | 1.1.- | 1.1. - | Change, % | 1.1. - |
| | 31.3. | 31.3. | | 31.12. |
| | 2008 | 2007 | | 2007 |
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| Net sales | 24,078 | 28,797 | -16.4 | 113,489 |
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| Operating profit | 1,337 | 3,526 | -62.1 | 4,780 |
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| % of net sales | 5.6 | 12.2 | | 4.2 |
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| Profit before tax | -31 | 3,186 | -101.0 | 2,420 |
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| % of net sales | -0.1 | 11.1 | | 2.1 |
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| Profit for the period | -92 | 2,304 | -104.0 | 2,010 |
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| % of net sales | -0.4 | 8.0 | | 1.8 |
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| Shareholders´ equity | 23,070 | 26,579 | -13.2 | 23,533 |
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| Interest-bearing liabilities | 32,861 | 35,360 | -7.1 | 32,762 |
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| Cash and cash equivalents | 4,417 | 5,884 | -24.9 | 4,901 |
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| Net interest-bearing | 28,444 | 29,476 | -3.5 | 27,861 |
| liabilities | | | | |
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| Capital employed | 55,930 | 61,939 | -9.7 | 56,295 |
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| Return on equity, % | -1.6 | 36.2 | | 8.4 |
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| Return on capital employed, | 2.6 | 24.3 | | 7.3 |
| % | | | | |
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| Equity ratio, % | 30.9 | 31.7 | | 31.3 |
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| Net gearing, % | 123.3 | 110.9 | | 118.4 |
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| Capital expenditure | 319 | 587 | -45.7 | 2,469 |
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| % of sales | 1.3 | 2.0 | | 2.2 |
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| Research and development | 0 | 815 | -100.0 | 2,824 |
| costs | | | | |
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| % of net sales | 0.0 | 2.8 | | 2.5 |
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| Order stock | 15,469 | 14,614 | 5.9 | 12,889 |
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| Earnings per share, EUR | -0.01 | 0.19 | -104.0 | 0.17 |
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| Earnings per share, EUR, | -0.01 | 0.19 | -104.0 | 0.17 |
| diluted | | | | |
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| Equity per share, EUR | 1.98 | 2.23 | -11.2 | 1.98 |
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| Average number of shares | | | | |
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| - cumulative | 11,897 | 11,897 | 0.0 | 11,830 |
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| - cumulative, diluted | 11,897 | 11,897 | 0.0 | 11,847 |
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| Average number of employees | 570 | 576 | -1.0 | 600 |
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