CRAMO PLC INTERIM REPORT POWERING YOUR BUSINESS

Transcription

1 CRAMO PLC INTERIM REPORT POWERING YOUR BUSINESS

2 CEO Vesa Koivula CFO Martti Ala-Härkönen 2

3 Contents Highlights of Q2/2011 and market outlook Interim report Q2/2011 Group performance Business segments Execution of Cramo s strategy Appendix Additional financial information 3

4 Highlights of Q2/2011 Strong sales growth, better profitability, increasing market uncertainty Strong sales growth continued in Q2/2011, profitability improved according to expectations Sales EUR 161,1m (114,0m), growth 41,4% EBITA EUR 14,3m (3,8m), margin 8,9% (3,3%) EPS EUR 0,09 (-0,15) Cash flow from operations improved clearly, acquisitions and investments impacted cash flow after investments; capital structure improved as a result of the rights issue Cash flow from operations EUR 32,4m in H1/11 (EUR 11,2m) Cash flow after investments EUR -98,3m in H1/11 (EUR 18,1m) Gearing 91,8% (111,7%) Execution of Cramo s strategy continued Rights Issue to support Cramo's business and to strengthen balance sheet completed in April; EUR 97,4m of new equity raised after expenses Acquisitions of Tidermans in Sweden and Stavdal in Norway in June Integration of Theisen Group proceeded according to plans Denmark Switzerland Norway Germany Slovenia Croatia Bosnia and Herzegovina Czech Republic Austria Sweden Macedonia Albania Kaliningrad Poland Slovakia Hungary Serbia Finland Estonia Latvia Lithuania Romania Bulgaria Belarus Moldova St. Petersburg Ukraine Moscow Russia Yekaterinburg Number of depots 6/2011: 398 4

5 Expected construction growth, Construction output, % change E 2011E 2012E 2013O Finland 6,3% (5,8%) Sweden 3,5% (4%) 5 4,0% (5,0%) 5,0% (8%) Norway -3,3% 5,9% Denmark -8,4% (-10,8%) (4%) 2,7% (-1,1%) 0,6% (3,0%) 4,0% (3%) 6,2% (6%) 5,7% (2,0%) 2,5% 1,8% 3,9% 8,7% Baltic Countries -15,1% 7,9% 9,7% 7,7% Poland 4,8% 12,8% 4,1% 1,0% Czech Republic -7,6% -1,1% -0,2% 0,8% Slovakia -3,6% -1,6% 4,4% 3,9% Russia -1,0% 5,0% 7,0% 7,0% Germany 1,9% 1,7% 1,8% 1,7% Austria -3,4% 0,0% 1,0% 1,3% Switzerland 3,3% 0,8% 1,7% 1,9% Hungary -9,0% -3,0% 3,8% 7,9% Sources: Euroconstruct and VTT, June Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (April 2011); Sweden - Sveriges Byggindustrier (June 2011); Norway Prognosesenteret (April 2011), figures for Norway include building construction and exclude civil engineering, which is expected to grow by 6% in 2011 and 15% in 2012 ; Denmark - Dansk Byggeri (February 2011)

6 Cramo well-positioned Larger footprint together with the acquired Theisen Group ** Estonia 40 % Construction output growth -13, cumulative % Latvia Lithuania Russia Denmark Finland Slovakia Italy The Netherlands France Hungary Norway Austria UK 30 % 20 % Sweden 0 % Czech -60 % -50 % -40 % -30 % -20 % -10 % 0 % 10 % Ireland Spain Portugal 10 % Switzerland Republic Belgium -10 % Poland*** Germany Faster speed of recovery from recession -20 % Construction output loss, cumulative % from peak to trough * Higher extent of construction output loss in recession Cramo countries Theisen countries Sources: *As presented in Euroconstruct, June. **Growth estimates from Euroconstruct and VTT, June 2011 ***Poland: historical output change calculated for , ie. the year of lowest growth 6

7 Rental recovery in Europe Nordic countries and Germany at the frontline of recovery Size of European Equipment Rental Market* Growth per country/region** European Equipment Rental market value (EUR bn) , ,3 Growth in and 2011: Germany: +6% +5% Sweden: +4% +8% Europe: -1% +3% 20,1 19,9 20, E 2011F Rental without operators ** Percentage of companies in a region expecting Q1/11 to grow vs. Q1/10 Sources: European Rental Association, June 2011 and International Rental News, May

8 Confidence among rental companies Confidence stabilising and positive, but mixed country-level results Current rental business conditions in Europe Improving conditions 100 % 80 % 60 % 40 % 20 % 0 % Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11-20 % -40 % -60 % Declining conditions -80 % -100 % Source: ERA / IRN Rental Tracker Survey June 2009 April 2011 (International Rental News) 8

9 Europe s debt crisis The recent debt crisis in certain eurozone countries has increased the uncertainty of nearterm future economic development in Europe The crisis has led to lower business confidence and increased the risk levels associated also with Cramo s business operations The increased risk level will be taken into account in Cramo s business planning 9

10 Leading European Rental companies Incl. Theisen Group, Cramo grew to #2 position in Europe in early 2011 European Sales European (EUR Sales million) (EUR million) Type of operation Areas of operation Loxam (France) 703 Construction equipment, tools FRA, IRE, UK, GER, SPA, BEL, SWI, LUX, DEN Ramirent (Finland) Cramo (Finland) Algeco Scotsman (US) Construction equipment, tools Construction equipment, tools, modular space Modular space FIN, SWE, NOR, DEN, RUS, EST, LAT, LIT, POL, HUN, UKR, CZE, SLO FIN, SWE, NOR, DEN, RUS, EST, LAT, LIT, POL, CZE, SLO (GER, AUT, SWI, HUN from 02/11) Europe, North America, Asia Speedy Hire (UK) 403 Construction equipment, tools UK, IRE Sarens (Belgium) 384 Cranes Worldwide Liebherr Mietpartner (Germany) 305 Construction equipment Germany, France, Spain, Austria, Switzerland, UK Kiloutou (France) 292 Construction equipment, tools France Mediaco Levage (France) 280 Cranes, construction equipment France HKL Baumaschinen (Germany) 265 Construction equipment Germany, Poland, Spain Source: International Rental News, June

11 Q2 / 2011 Group performance 11

12 83,6 96,7 105,5 116,6 107,3 106,9 116,4 109,3 101,4 115,1 115,4 114,0 129,0 126,8 130,4 143,8 143,3 154,0 155,7 146,4 144,2 161, Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Quarterly sales (EUR million) Q1/11 Q2/11 Cramo quarterly sales development Q2/11 sales increased 41,4% (46,4% in local currency) vs. Q2/10 Quarter y-o-y: 41,4% (46,4%*) * Change in local currencies 12 Q2 vs. Q1/11: 11,7%

13 Cramo quarterly EBITA development Profitability improved compared to Q2/10 Note: EBITA in Q1/11 includes non-recurring costs related to the acquisition of the Theisen Group amounting to EUR 2,1m, whereas EBITA in Q1/ included a net capital gain from certain modular space sales amounting to EUR 5,7m 13

14 EBITA impacted by non-recurring items Comparable EBITA improved by about EUR 19m in H1/11 relative to previous year EBITA, EUR million 1-6/ 1-6/ 2011 Difference Reported Group EBITA 5,3 16,8 +11,5 Excluding non-recurring items: Capital gain in Q1/* 5,7 Theisen acquisition costs in Q1/2011** -2,1 EBITA excl. non-recurring items -0,5 18,8 +19,3 Impact of Theisen Group*** 0,5 EBITA excl. non-recurring items and Theisen -0,5 18,4 +18,9 * Non-recurring capital gain in Q1/ included capital gains on the sale of certain used modular space units ** Non-recurring costs in Q1/2011 included approximately EUR 2,1 million of costs related to the acquisition of the Theisen Group *** Business Segment Central Europe (Theisen Group) has been consolidated into Cramo Group as of February 1,

15 Quarterly EPS performance (diluted) Q2/11 EPS* was positive and improved clearly compared with Q2/10 * Due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been adjusted by multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before exercise of rights divided by the theoretical ex-rights value per share Note: Q4/09 includes write-downs on Group goodwill and intangible assets resulting from acquisitions totalling EUR 21,8m 15

16 Capital Expenditure Increased CapEx in H1/2011 was driven by strategic acquisitions* (EUR 117,2m) and organic investments (EUR 71,2m) * Acquisitions include Theisen Group completed in Q1/11 and Tidermans and Stavdal completed in Q2/11 16

17 Cash flow Cash flow from operations was EUR 32,4m in H1/2011, while acquisitions and investments are reflected in the negative cash flow after investments Note: Cash flow after investments includes acquisitions 17

18 Sales to tangible assets improving Still potential to improve % % Sales or Tangible assets, EUR m % 60 % 40 % Sales, R12m / Tangible assets, % % 0 Q Q Q Q Q Q Q Q Q Q Q Q Q Q1- Q2- Sales, R12m Tangible assets Sales / tangible assets Q3- Q4- Q Q % 18

19 Strengthening capital structure Gearing decreased as a result of the rights issue completed in April % ,6 % 151,3 % 147,1 % 149,3 % 160 % Net interest-bearing liabilities (EUR m) ,5 % 118,4 % 106,9 % 109,1 %109,4 % ,5 % 113,1 %113,4 % 108,4 % 111,7 % 107,5 %103,4 % 124,2 % ,8 % % 120 % 100 % 80 % 60 % 40 % Gearing % % 0 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 0 % Net interest-bearing liabilities Gearing % 19

20 Successful Rights Issue completed A solid base for Cramo s business The Rights Issue was completed according to plan in April 2011 The Issue was oversubscribed 97,2% of the offered shares were subscribed for with subscription rights; the remaining shares were subscribed for without subscription rights Total subscription level in the Rights Issue was 175,6% As a result of the Rights Issue, the number of Cramo s shares outstanding increased by 9,489,877 to 41,122,798 shares Excluding 316,288 treasury shares held by Cramo The total net proceeds of the Rights Issue amounted to EUR 97,4m Proceeds of the Issue will be used to further support Cramo's business 20

21 Q2 / 2011 Business segments 21

22 Sales by business segment Theisen acquisition will balance geographic sales mix Sales 1-6/2011 Sales 1-6/ EUR 305,4 million EUR 215,4 million Central Europe* 9,9 % Denmark 4,5 % Eastern Europe 9,0 % Finland 19,2 % Norway 14,8 % Eastern Europe Denmark 9,0 % 5,7 % Finland 19,1 % Norway 12,1 % Sweden 45,3 % Sweden 51,4 % * Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The Business Segment includes Cramo s operations in Germany, Austria, Switzerland and Hungary. Central Europe figures are included for February-June

23 Finland Sales growth continued, profitability improved 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ (EUR 1 000) 2011 % 2011 % Sales ,8 % ,4 % EBITA ,9 % ,5 % EBITA-% 13,6 % 11,2 % 10,8 % 7,4 % 12,5 % Highlights Sales by quarter Sales growth continued in Q2/11 Construction and rental recovery continued Outsourcing agreements signed in contributed to growth Demand for modular space remained steady Profitability improved compared to previous year In industrial construction, demand is the highest in the energy and mining sectors The Group s new reporting system was introduced during the period Fleet utilisation rates were at a good level, fleet investments increased Euroconstruct* construction growth forecast +4% in 2011 (RT** +5%) * Euroconstruct, June 2011 ** Rakennusteollisuus RT, April Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,7 3,7 23,3 0,9 19,1 28,2 33,1 22,6 22,7 31,3 34,0 23,8 27,4 EBITA by quarter 31,5 22,4 Q1 Q2 Q3 Q4 0,6 2,2 6,1 1,8 2,5 4,2 9,7 4,3 6,1 6,8 3,7 Q1 Q2 Q3 Q4 30,4 3,

24 Sweden Favourable development in sales and profitability 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ (EUR 1 000) ,6%* % ,1%* (local curr.) % (local curr.) Sales ,6 % ,0 % EBITA ,5 % ,7 % EBITA-% 18,7 % 14,6 % 16,3 % 12,7 % 16,4 % Highlights Sales by quarter Sales increased by 19,6% compared to Q2/10 (11,6% in local currency) Strong increase in construction activity and industrial investments boosted growth in sales Growth was particularly strong in the Stockholm area and Southern Sweden Growth in euros was boosted by the Swedish krona that remained stronger year-on-year Profitability developed favourably and EBITA improved compared to previous year Fleet utilisation rates were at a good level and investments continued, both organically and through the acquisition of Tidermans Euroconstruct** estimates construction growth to be 5%** in 2011 (BI*** 8%) * Change in sales measured in local currency ** Euroconstruct, June 2011 *** Sveriges Byggindustrier, June Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,7 13,1 50,1 7,3 51,9 68,1 73,8 53,0 60,6 72,5 70,7 55,3 64,8 EBITA by quarter 66,7 57,4 Q1 Q2 Q3 Q4 5,4 9,3 16,9 9,8 8,8 13,6 18,9 11,1 12,3 14,1 7,8 Q1 Q2 Q3 Q4 74,5 14,

25 Norway Sales grew but profitability weakened in a weaker than expected market 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ (EUR 1 000) ,3%* % ,3%* (local curr.) % (local curr.) Sales ,3 % ,9 % EBITA ,6 % ,1 % 303 EBITA-% -6,6 % -2,0 % -2,0 % -1,3 % 0,4 % Highlights Sales by quarter Sales increased by 13,3% compared to previous year in Q2/11 (12,3% in local currency) Recovery in construction has been below industry expectations; upswing is expected later in 2011 EBITA declined compared to previous year Q2/11 includes expenses related to unprofitable projects Measures aimed at improving profitability were continued through reorganisation of operations However, the result of the Norwegian operations improved by the end of the period In line with its Best in town strategy, Cramo acquired all shares in Stavdal Utleiesenter AS Euroconstruct** estimates construction to increase by 6% in * Change in sales measured in local currency ** Euroconstruct, June 2011 Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,6 0,9 15,8 1,2 17,1 20,2 18,6 15,7 15,3 17,4 18,2 15,6 17,0 EBITA by quarter 17,2 16,3 Q1 Q2 Q3 Q4-0,1 0,4 2,4 1,1-0,3-1,2 2,3 0,9 0,3 0,6 0,9 Q1 Q2 Q3 Q4 19,7 0,

26 Denmark Sales developed positively, EBITA continued to improve 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ (EUR 1 000) 2011 % 2011 % Sales ,2 % ,3 % EBITA ,0 % ,2 % EBITA-% -8,3 % -18,8 % -16,3 % -36,0 % -18,1 % Highlights Sales by quarter Sales increased by 15,2% in Q2/11 compared to previous year and by 23,9% compared to Q1/11 Construction activity decreased more than expected in but the industry s outlook for 2011 is cautiously positive Slower than expected rate of recovery in construction also affected Cramo s sales and profit. After the harsh winter, sales developed positively in the spring EBITA improved compared to previous year but was still negative Fleet utilisation rates improved Balance between the demand for and supply of rental equipment achieved after the downturn Profitability expected to improve further during 2011 Euroconstruct* estimates construction output to improve nearly 3% in Dansk Byggeri** expects a further decline of 1% in 2011 * Euroconstruct, June 2011 ** Dansk Byggeri, February Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,5-0,2 8,5-1,7 5,7 6,3 11,9 8,8 6,7 7,8 11,8 9,7 8,4 EBITA by quarter 10,3 9,3 Q1 Q2 Q3 Q4-3,2-1,6 0,5-1,2-1,3-0,6 0,2 Q1 Q2 Q3 Q4-1,6-0,8-3,4-4,4 8,6 0,

27 Central Europe* Sales increased and EBITA turned clearly positive in Q2/11 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ (EUR 1 000) 2011 % 2011 % Sales EBITA EBITA-% 8,2 % - 1,5 % - - Highlights Sales by quarter Sales in April-June 2011 amounted to EUR 19,9m Market situation in equipment rental improved compared to the previous year in all markets Stronger than expected development of the German economy in H1 was reflected in rental demand Demand developed positively also in Austria EBITA in April-June turned clearly positive, amounting to 1,6m (8,2% of sales) After the winter season, Q2 result developed positively The segment is more strongly affected by seasonal fluctuations due to focus on construction equipment Fleet investments continued as planned Euroconstruct** forecasts construction growth of nearly 2% in 2011 in Germany, 1% in Switzerland, 0% in Austria and -3% in Hungary * Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The Business Segment includes Cramo s operations in Germany, Austria, Switzerland and Hungary ** Euroconstruct, June Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,6 19,9 Q1 Q2 Q3 Q4-1,2 EBITA by quarter 1,6 Q1 Q2 Q3 Q

28 Eastern Europe* Sales continued to grow strongly, EBITA improving but still negative 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ 41,0%** 40,6%** (EUR 1 000) 2011 % (local curr.) 2011 % (local curr.) Sales ,2 % ,4 % EBITA ,4 % ,9 % EBITA-% -10,2 % -37,8 % -13,4 % -45,1 % -23,0 % Highlights Sales by quarter Sales in Q2/11 grew strongly by 40,2% compared to Q2/10 (41,0% in local currency) Construction growth seen in H2/10 continued in most markets; strongest rates of growth seen in Estonia, Poland and the Moscow region in Russia Residential construction and energy sector investments have increased construction activity in Estonia and Lithuania Cramo s year-on-year sales increased in all markets EBITA improved but remained negative in Q2/11 Profitability developed favourably in all markets as a result of sales growth and adjustments concluded in previous years Euroconstruct*** forecasts double-digit construction growth in 2011 in Estonia and Poland, 5-7% growth in Lithuania and Russia, 0% in Latvia and a 1-2% decline in the Czech Republic and Slovakia * Includes Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia. Until 31 December, the name of the segment was Central and Eastern Europe ** Change in sales measured in local currency *** Euroconstruct, June Quarterly sales (EUR m) Quarterly EBITA (EUR m) ,2 1,5 10,4-4,9 9,0 12,9 19,9 10,4 10,7 15,0 23,6 12,0 14,4 EBITA by quarter 19,8 11,3 Q1 Q2 Q3 Q4-4,8-2,2 2,8-4,5-4,0-1,5 5,4-3,0-1,5 0,2 Q1 Q2 Q3 Q4-5,2 15,8-1,

29 Execution of Cramo s strategy 29

30 Must-Win Battles for Renew Cramo Concept: Roll out the renewed Cramo Concept to all Cramo markets Implement Cramo Processes: Implement unified Cramo Processes throughout the Group Develop Cramo People: Develop Cramo People to be passionate rental business champions Be Best in Town, Win Next Markets: Penetrate successfully new geographic markets Drive Modular Space Growth: Drive profitable growth in non-construction modular space outside Finland and Sweden Acquisitions in H1/2011

31 Implementing Best in town strategy Two acquisitions completed in June Oslo area, Norway In June 2011, Cramo acquired all shares in Stavdal Utleiesenter AS in Norway One of the leading rental companies in the Oslo area (Norway s capital city) with four depots Specialises in equipment and construction machinery rental services Sales in of approximately EUR 7,3m with a total of 25 employees Gothenburg area, Sweden In June 2011, Cramo acquired all shares in Tidermans Hyrmaskiner AB and Tidermans Hyrmec AB One of the largest regional rental operators in Western Sweden with five depots in the Gothenburg area General rental company, with a product mix focused primarily on tools but also construction and access The combined sales of the acquired operations was about EUR 14,2m in and the number of employees 63 Cramo becomes a clear market leader in rental business in the Gothenburg area, Sweden s second largest city 31

32 Implementing Win next markets Integration of Theisen Group The initial, focused 100-day integration plan of the Theisen Group was successfully completed during Q2 Focus on realising most important integration activities and quick wins while securing business growth and continuity Prioritised areas included organisation & HR, finance and reporting, fleet management, IT and communications In May 2011, Mr Dirk Schlitzkus was appointed as Senior Vice President, Central Europe and member of the Cramo Group management team and Managing Director of Theisen Baumaschinen AG Mr Schlitzkus joined Theisen in 1994 One of the driving forces behind the company s fast expansion of rental depots in Germany, Austria, Hungary and Switzerland Theisen integration process to be fully completed by the year-end 32

33 Cramo s strengths in executing its strategy 6. Well-established brand 1. Growing rental business 5. Operational efficiency 2. Second largest equipment rental solution provider in Europe 4. Modular space opportunities 3. Total solution provider 33

34 Future prospects Positive market outlook for 2011, overshadowed by recent rapidly increasing uncertainty The construction and equipment rental service markets are expected to grow stronger in almost all of Cramo s market areas in 2011 However, most recent economic development indicates increased uncertainty, and therefore market forecasts have to be interpreted with considerable caution Cramo anticipates stronger growth in the demand for rental services than in construction The recent debt crisis in certain eurozone countries has increased business risk levels The Group has modified its guidance. The new guidance is: In spite of the increased market uncertainty, the Group s sales in 2011 are expected to grow both organically and as a consequence of acquisitions. The Group s EBITA margin will improve compared with. 34

35 Appendix

36 Key figures 4-6/ 4-6/ Change 1-6/ 1-6/ Change EUR (1 000) 2011 % 2011 % 1-12/ INCOME STATEMENT Sales ,4 % ,8 % EBITDA ,7 % ,0 % Operating profit (EBITA) before amortisation and impairment ,6 % ,6 % of intangible assets resulting from acquisitions Operating profit/loss (EBIT) ,9 % ,6 % Profit/Loss before tax (EBT) ,1 % ,6 % Profit/Loss for the period ,1 % ,4 % SHARE-RELATED INFORMATION Earnings per share (EPS), EUR 0,09-0,15 160,0 % -0,07-0,37 81,1 % -0,06 Earnings per share (EPS), diluted, EUR 0,08-0,14 157,1 % -0,07-0,36 80,6 % -0,06 Shareholders' equity per share, EUR 10,17 9,62 5,7 % 10,52 BALANCE SHEET Equity ratio, % 41,7 % 38,0 % 38,7 % Gearing, % 91,8 % 111,7 % 103,4 % Net interest-bearing liabilities ,4 % OTHER INFORMATION Return on investment, rolling 12-month, % 4,6 % -1,3 % 3,7 % Return on equity, rolling 12-month, % 1,9 % -11,8 % -0,6 % Gross capital expenditure (incl. acquisitions) ,0 % of which related to acquisitions and business combinations ,1 % Cash flow after investments ,5 % Average number of personnel (FTE) ,2 % Number of personnel at end of period (FTE) ,9 % Of note is that due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been adjusted by multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before exercise of rights divided by the theoretical ex-rights value per share 36

37 Consolidated income statement 4-6/ 4-6/ Change 1-6/ 1-6/ Change EUR (1 000) 2011 % 2011 % 1-12/ SALES ,4 % ,8 % Other operating income ,1 % ,8 % Change in inventories of finished goods and ,4 % ,0 % work in progress Production for own use ,4 % ,6 % Materials and services ,7 % ,1 % Employee benefit expenses ,0 % ,8 % Other operating expenses ,0 % ,6 % Depreciation and impairment on tangible ,2 % ,9 % assets and assets available for sale EBITA ,6 % ,6 % % of sales 8,9 % 3,3 % 5,5 % 2,4 % 7,0 % Amortisation and impairment on intangible ,0 % ,1 % assets resulting from acquisitions OPERATING PROFIT/LOSS (EBIT) ,9 % ,6 % % of sales 7,3 % 1,8 % 3,8 % 0,9 % 5,6 % Finance costs (net) ,9 % ,4 % PROFIT/LOSS BEFORE TAXES ,1 % ,6 % % of sales 3,6 % -3,7 % 0,6 % -5,0 % 1,0 % Income taxes ,4 % ,2 % PROFIT/LOSS FOR THE PERIOD ,1 % ,4 % % of sales 2,1 % -4,3 % -0,8 % -5,7 % -0,4 % 37

38 Consolidated balance sheet Change EUR (1 000) 2011 % ASSETS NON-CURRENT ASSETS Tangible assets ,8 % Goodwill ,5 % Other intangible assets ,8 % Deferred tax assets ,9 % Available-for-sale financial investments ,5 % 347 Derivative financial instruments Trade and other receivables ,0 % TOTAL NON-CURRENT ASSETS ,7 % CURRENT ASSETS Inventories ,6 % Trade and other receivables ,1 % Income tax receivables ,5 % Derivative financial instruments ,8 % 825 Cash and cash equivalents ,9 % TOTAL CURRENT ASSETS ,4 % Assets available for sale ,4 % Change EUR (1 000) 2011 % EQUITY AND LIABILITIES EQUITY Share capital ,0 % Other reserves ,9 % Fair value reserve ,0 % 117 Hedging fund ,4 % Translation differences ,7 % Retained earnings ,9 % EQUITY ATTRIBUTABLE TO SHARE- HOLDERS OF THE PARENT COMPANY ,3 % Non-controlling interest ,0 % 503 Hybrid capital ,0 % TOTAL EQUITY ,8 % NON-CURRENT LIABILITIES Interest-bearing liabilities ,9 % Derivative financial instruments ,4 % Deferred tax liabilities ,6 % Provisions Other non-current liabilities ,3 % TOTAL NON-CURRENT LIABILITIES ,6 % CURRENT LIABILITIES Interest-bearing liabilities ,7 % Derivative financial instruments ,0 % Trade and other payables ,8 % Income tax liabilities ,0 % TOTAL CURRENT LIABILITIES ,9 % TOTAL LIABILITIES ,8 % TOTAL ASSETS ,0 % TOTAL EQUITY AND LIABILITIES ,0 %

39 Cash flow statement 1-6/ 1-6/ 1-12/ EUR (1 000) 2011 Net cash flow from operating activities Net cash flow from investing activities Cash flow from financing activities Change in interest-bearing receivables Change in finance lease liabilities Change in interest-bearing liabilities Hybrid capital Proceeds from share options exercised Proceeds from share issue Non-controlling interest -76 Dividends paid Net cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalents at period start Translation differences Cash and cash equivalents at period end

40 Segment performance 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ SALES, EUR (1 000) 2011 % 2011 % Finland ,8 % ,4 % Sweden ,6 % ,0 % Norway ,3 % ,9 % Denmark ,2 % ,3 % Central Europe Eastern Europe ,2 % ,4 % Inter-segment sales ,8 % ,8 % Group sales ,4 % ,8 % / 4-6/ Change 1-6/ 1-6/ Change 1-12/ EBITA, EUR (1 000) 2011 % 2011 % Finland ,9 % ,5 % Sweden ,5 % ,7 % Norway ,6 % ,1 % 303 Denmark ,0 % ,2 % Central Europe Eastern Europe ,4 % ,9 % Non-allocated capital gains and other income ,0 % Non-allocated Group activities ,4 % ,5 % Eliminations ,1 % ,5 % -52 Group EBITA ,6 % ,6 %

41 Modular space order book Order book increased clearly from Q1/11 *In Q1/ there was an external sale of some modules 41