Panostaja Oyj Stock Exchange Bulletin, 13th March 2008 PANOSTAJA GROUP INTERIM REPORT FOR THE THREE MONTHS TO 31ST JANUARY 2008 - Net turnover stood at EUR 31.6 million (EUR 16.7 million), equivalent to 89% growth. - Operating profit stood at EUR 1.54 million (EUR 1.35 million), equivalent to 14% growth. - Earnings per share (basic) stood at 1.5 cents (2.0 cents). - Equity per share was EUR 0.71 (EUR 0.52). - The equity ratio stood at 34.5% (33.3%). - Net turnover for the financial year will increase significantly due to business acquisitions made at the beginning of the reporting period and in the middle of the previous financial year. - Operating profit for the financial year will improve on the previous year, provided that there are no material changes in the economic situation. This Interim Report was prepared in compliance with the recognition and measurement principles of the International Financial Reporting Standards (IFRS), complying with the same accounting policies as the financial statements prepared for 2006/2007. GROUP FINANCIAL PERFORMANCE Panostaja Group's net turnover for the last quarter was EUR 31.6 million (EUR 16.7 million). Growth in net turnover resulted from acquisitions made during the previous financial year in particular. The Group's operating profit was EUR 1.54 million (EUR 1.35 million), while profit before taxes stood at EUR 1.23 million (EUR 1.25 million). The Group's operating profit improved due to the growth in net turnover, but the Group's profitability decreased relative to net turnover. Operating margin stood at 4.9% (8.1%). The level of net turnover was influenced by normal seasonal fluctuations and recognition of contract revenue. The net turnover for the first quarter of the Group's largest segment in terms of net turnover (i.e. Industrial Construction) decreased by EUR 0.4 million from the comparative period, even though operations continued to be healthy. The Group's net financial expenses amounted to about EUR 0.3 million. The Group's average number of employees during the reporting period was 727 (453). INVESTMENTS AND FINANCING The Group's gross capital expenditure during the first quarter amounted to EUR 8.76 million (EUR 0.16 million). The most important investment during the reporting period was the acquisition of Hervannan Koneistus Oy carried out by Takoma Oyj. Cash flow from operating activities was strong throughout the period under review. The Group's equity ratio stood at 34.5% (33.3%). Dividends distributed during the period amounted to EUR 3.97 million. In addition, dividends paid to minority shareholders in subsidiaries amounted to EUR 0.43 million. During the reporting period, the Group acquired an interest-rate cap to hedge the loans raised by Group companies during the 2006/2007 period, totalling EUR 24.82 million. CHANGES TO THE GROUP STRUCTURE Takoma Oyj (former Suomen Helasto Oyj), Panostaja Oyj's publicly listed subsidiary, purchased the share capital in Hervannan Koneistus Oy from Kimmo Korhonen and the business of Tampereen Laatukoneistus Oy from Panostaja Oyj through transactions carried out on 1st November 2007. Acquisitions were made on the basis of authorisations granted by Takoma Oyj's Extraordinary General Meeting on 17th October 2007. Takoma Oyj signed a share exchange agreement with Kimmo Korhonen, owner of Hervannan Koneistus Oy, whereupon Mr. Korhonen conveyed the entire share capital in Hervannan Koneistus Oy to Takoma. In order to carry out the share exchange, Takoma Oyj's Board of Directors decided to increase the company's share capital by EUR 159,775.50 to EUR 939,855.96 by launching a share issue disapplying shareholders' pre-emption rights and to give Kimmo Korhonen 2,662,925 new Takoma Oyj shares at a subscription price of EUR 1.84 per share in exchange. The value of the share exchange, calculated according to the closing price of Suomen Helasto Oyj's share on 31st October 2007, amounts to EUR 4.9 million. Disapplication of pre-emption rights was authorised by the General Meeting and there was a significant financial reason for doing so from the Company's point of view. New shares were issued as part of the acquisition related to the restructuring. The new shares conveyed to Kimmo Korhonen were entered in the Trade Register on 28th November 2007, whereupon Panostaja Oyj's holding in Takoma Oyj dropped to 79.19%, thus removing Panostaja Oyj's right and obligation imposed on a majority shareholder in Chapter 18, section 1 of the Limited Liability Companies Act to redeem Takoma Oyj shares. On 1st November 2007, Takoma Oyj's subsidiary, Causatak Oy, purchased the business of Tampereen Laatukoneistus Oy, belonging to Panostaja Group, for a trade price of EUR 3.7 million. Assets outside the ordinary course of business, including premises owned by the company, remained with the selling company as part of the business transaction. EVENTS SUBSEQUENT TO THE REPORTING PERIOD In the Financial Statements Bulletin issued on 11th December 2007, Panostaja Oyj's Board of Directors announced that they had decided to start exploring the possibilities of distributing Takoma Oyj shares as dividends to Panostaja Oyj shareholders. Investigations have been carried out during the reporting period and work is still ongoing. ADMINISTRATION AND ANNUAL GENERAL MEETING Panostaja Oyj's Annual General Meeting was held in Tampere, Finland, on 18th December 2007. The AGM re-elected Mr. Matti Koskenkorva, Mr. Jukka Ala-Mello and Mr. Hannu Tarkkonen to Panostaja Oyj's Board of Directors. New members elected to the Board were Mr. Hannu Martikainen, Honorary Counsellor of Construction Engineering, and Mr. Hannu Ketola, Master of Social Sciences in Political Science. As soon as the Annual General Meeting was concluded, the Board of Directors convened for their organisational meeting and appointed Mr. Matti Koskenkorva Chairman of the Board and Mr. Jukka Ala-Mello Deputy Chairman. As auditors, the AGM further elected Mr. Hannu Pellinen, APA, and PricewaterhouseCoopers Oy, APA, with Mr. Janne Rajalahti, APA, as the responsible auditor. The Annual General Meeting adopted the financial statements presented for the financial year ended 31st October 2007 and approved the Board's proposal to transfer the profit for the period to retained earnings and to distribute EUR 0.09 per share in dividends. The record date for dividend payment was 21st December 2007 and the payment date was as from 31st December 2007. In addition, the AGM discharged the Board of Directors and the Chief Executive Officer from liability. The Annual General Meeting revoked all authorisations granted at the Annual General Meeting held on 15th December 2006 and authorised the Board of Directors to decide on offering no more than 2,725,659 Class A shares and no more than 62,794,408 Class B shares through a regular or bonus issue or by granting share options and other rights referred to in Chapter 10, section 1 of the Limited Liability Companies Act, in one or more tranches. The authorisation does not exclude the Board's right to decide on private placements or on granting the aforementioned special rights. The authorisation covers the Board's right to decide on any and all terms and conditions of the share issue(s) and said special rights, including recipients of shares or special rights and the amounts payable in consideration. The Annual General Meeting authorised the Board of Directors, within the limits of the aforementioned authorisation, to decide on an increase in share capital through one or more share issues or by granting share options and other rights referred to in Chapter 10, section 1 of the Limited Liability Companies Act, such that a maximum of 1,000,000 new Class A shares and a maximum of 60,000,000 new Class B shares may be offered for subscription in the issue(s) at a nominal price of EUR 0.12 each. The share capital increase must not exceed EUR 7,320,000. In addition, the Annual General Meeting authorised the Board of Directors, within the limits of the aforementioned authorisation, to decide on a share issue, granting share options and other rights referred to in Chapter 10, section 1 of the Limited Liability Companies Act, whereby the company will offer no more than 1,725,659 and 2,794,408 of its Class A and B shares, respectively. The authorisation will be valid for five years as from the decision taken at the AGM. The Board has not exercised these authorisations during the period under review. The Annual General Meeting authorised the Board of Directors to decide on buying back the company's own shares using unrestricted shareholders' equity within 18 months from the date of the decision taken at the AGM. The decision(s) to buy back the company's own shares must be made in proportion with the classes of shares and such that the maximum numbers of shares being bought at a nominal value of EUR 0.12 each may be 1,725,659 Class A shares and 2,794,408 Class B shares, so that the total number of shares being bought will not exceed 10% of the company's total number of shares. The shares will be bought in the way and to the extent decided by the Board to be used as consideration for possible business acquisitions or other restructuring measures or when purchasing assets as part of business operations on behalf of the company or a company belonging to the same group, for developing the company's capital structure, for cancelling shares, or for implementing an incentive scheme for key personnel. The shares will be acquired in disproportion to shareholdings in public trading organised by the Helsinki Stock Exchange at their current price in public trading at the time of purchase. SHARE CAPITAL AND OWN SHARES At the end of the reporting period, Panostaja Oyj's share capital amounted to EUR 5,424,081.60 and the number of shares was 45,200,680. The numbers of issued Class A and B shares amounted to 17,256,595 and 27,944,085 respectively. The numbers of own shares held by the company at the end of the reporting period amounted to a total of 1,088,000 shares, consisting of 475,000 and 613,000 Class A and B shares respectively. The number of acquired Class A shares was equivalent to 1.05% of the total number of shares at the end of the reporting period and to 2.55% of the total number of votes carried by all shares. The number of Class B shares was equivalent to 1.36% and 0.16% of total numbers of shares and votes respectively. SUBORDINATED LOAN The amount of the 2006 convertible subordinated loan outstanding at the end of the period under review totalled EUR 18,700,000, entitling holders to subscribe for a total of 11,000,000 new Class B shares. During the reporting period, the subordinated loan was not used to subscribe for any new Class B shares. SHARE PERFORMANCE AND SHAREHOLDING During the reporting period, the prices of Panostaja Oyj Class A and B shares varied between EUR 1.17 and EUR 1.75 and between EUR 1.11 and EUR 1.73 respectively. The volumes of trading in Class A and B shares amounted to 357,828 and 1,263,169 shares respectively, equating to 4.5% of the share capital. January closing prices for Class A and B shares were EUR 1.17 and EUR 1.13 respectively. At the end of January, the company's total market capitalisation stood at EUR 51.8 million and the company had 1,962 (1,023) shareholders. SHORT-TERM RISKS AND UNCERTAINTIES Panostaja Group's significant risks have been described in the latest financial statements. Short-term risks are related to successful integration of acquired companies in particular. OUTLOOK FOR THE REST OF THE FINANCIAL YEAR Panostaja Group will continue to focus on the business idea in alignment with its core business strategy and on development of existing business areas. Creation of an entrepreneur-driven model in newly acquired business areas and companies is still partially incomplete. The retirement of the baby-boomers, combined with constantly increasing changes in the business environment that also affect companies operating exclusively on the domestic market, in particular internationalisation, will result in a large number of businesses becoming available for purchase over the next few years. Panostaja's operating conditions, available capital resources and liquid assets form a good foundation for intense expansion of operations. Increasing supply of SMEs operating in traditional industries will enable both further expansion into new business areas and growth in existing business areas. Domestically, the economic situation is expected to remain mostly favourable, even though economic growth is expected to slow down. The economic outlook for the current business areas' industries is moderately positive. The Group's net turnover for the financial year will increase significantly due to business acquisitions made at the beginning of the reporting period and in the middle of the previous financial year. In addition, the Group's operating profit for the financial year will improve on the previous year, provided that there are no material changes in the economic situation. However, increasing uncertainty in the construction industry cycle may affect the outlook for some business areas. The uncertain financial market has not affected Panostaja Oyj's operating conditions in terms of carrying out its core business strategy. Panostaja Oyj Board of Directors This stock exchange bulletin is a translation of the original Finnish stock exchange bulletin 12th March 2008 For further information, please contact Mr. Juha Sarsama, CEO, tel. +358 (04) 263 4333 or mobile +358 (0)40 774 2099. Panostaja Oyj Juha Sarsama CEO All forecasts and estimates presented in this Interim Report are based on the current views of the management of the Group and of the business areas on the economic environment and outlook and actual results may be significantly different. The data provided in this Interim Report is unaudited. FINANCIAL INFORMATION CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | | 11/07-01/08 | 11/06-01/07 | 11/06-10/07 | -------------------------------------------------------------------------------- | (EUR 1,000) | (3 months) | (3 months) | (12 months) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net turnover | 31,624 | 16,696 | 90,763 | -------------------------------------------------------------------------------- | Other operating income | 233 | 36 | 721 | -------------------------------------------------------------------------------- | Share of profit of associates | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Total expenses | 29,457 | 15,042 | 81,075 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Depreciation, amortisation and | 861 | 340 | 2,110 | | impairment | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 1,539 | 1,350 | 8,299 | -------------------------------------------------------------------------------- | Financial income and expenses | -309 | -103 | -815 | -------------------------------------------------------------------------------- | Profit before taxes | 1,230 | 1,247 | 7,484 | -------------------------------------------------------------------------------- | Income taxes | -266 | -324 | -1,900 | -------------------------------------------------------------------------------- | Profit from continuing | 964 | 923 | 5,584 | | operations | | | | -------------------------------------------------------------------------------- | Profit from discontinued | 0 | 0 | 350 | | operations | | | | -------------------------------------------------------------------------------- | Profit for the period | 964 | 923 | 5,934 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | 674 | 605 | 4,295 | | company | | | | -------------------------------------------------------------------------------- | Minority interest | 290 | 318 | 1,638 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share on | 0.015 | 0.020 | 0.120 | | continuing and discontinued | | | | | operations, EUR - basic | | | | -------------------------------------------------------------------------------- CONSLIDATED BALANCE SHEET -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (EUR 1,000) | 01/2008 | 01/2007 | 10/2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Intangible assets | 18,135 | 2,193 | 13,759 | -------------------------------------------------------------------------------- | Property, plant and equipment | 20,359 | 9,496 | 17,826 | -------------------------------------------------------------------------------- | Interests in associates | 973 | 891 | 975 | -------------------------------------------------------------------------------- | Other non-current assets | 365 | 123 | 230 | -------------------------------------------------------------------------------- | Interest-bearing receivables | | 15 | 15 | -------------------------------------------------------------------------------- | Total non-current assets | 39,832 | 12,718 | 32,345 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Stocks | 21,958 | 7,645 | 21,100 | -------------------------------------------------------------------------------- | Trade and other non-interest-bearing | 18,811 | 11,419 | 20,226 | | receivables | | | | -------------------------------------------------------------------------------- | Short-term investments | 9,030 | 15,407 | 16,289 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 24,909 | 6,603 | 24,985 | -------------------------------------------------------------------------------- | Total current assets | 74,708 | 41,074 | 82,600 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 114,540 | 53,792 | 114,945 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | -------------------------------------------------------------------------------- | Share capital | 5,424 | 3,572 | 5,424 | -------------------------------------------------------------------------------- | Other equity | 26,102 | 11,778 | 29,846 | -------------------------------------------------------------------------------- | Total | 31,526 | 15,350 | 35,270 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Minority interest | 7,771 | 2,307 | 4,290 | -------------------------------------------------------------------------------- | Total equity | 39,297 | 17,657 | 39,560 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 1,582 | 304 | 1,452 | -------------------------------------------------------------------------------- | Convertible loan | 18,113 | 12,517 | 18,074 | -------------------------------------------------------------------------------- | Non-current liabilities | 31,971 | 9,628 | 14,797 | -------------------------------------------------------------------------------- | Current liabilities | 23,577 | 14,686 | 41,062 | -------------------------------------------------------------------------------- | Total liabilities | 75,243 | 36,135 | 75,385 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and liabilities | 114,540 | 53,792 | 114,945 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | | 01/2008 | 01/2007 | 10/2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operating activities | 2,719 | 3,813 | 8,618 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow used in investing activities | -1,533 | -158 | -10,840 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Increase in creditors | 15,700 | 10,625 | 45,410 | -------------------------------------------------------------------------------- | Decrease in creditors | -19,371 | -669 | -8,961 | -------------------------------------------------------------------------------- | Dividends paid | -4,399 | -3,865 | -4,373 | -------------------------------------------------------------------------------- | Other changes in equity | -450 | -165 | -1,009 | -------------------------------------------------------------------------------- | Total cash flow from (used in) financing | -8,520 | 5,926 | 31,067 | | activities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash equivalents | -7,335 | 9,581 | 28,845 | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY -------------------------------------------------------------------------------- | (EUR 1,000) | Shar | Own | Shar | Invest | Trans | Retain | Minori | Total | | | e | shar | e | ed | lati | ed | ty | | | | capi | es | prem | unrest | on | earnin | intere | | | | tal | | ium | ricted | diffe | gs | st | | | | | | acco | equity | renc | | | | | | | | unt | fund | es | | | | -------------------------------------------------------------------------------- | Shareholders | 3,56 | | 2,68 | | | 11,909 | 2,154 | 20,31 | | ' equity as | 8 | | 3 | | | | | 4 | | at 31st Oct. | | | | | | | | | | 2006 | | | | | | | | | -------------------------------------------------------------------------------- | Increase of | 3 | | 16 | | | | | 19 | | share | | | | | | | | | | capital | | | | | | | | | | relating to | | | | | | | | | | convertible | | | | | | | | | | subordinated | | | | | | | | | | bonds | | | | | | | | | -------------------------------------------------------------------------------- | Equity | | | | 430 | | | | 430 | | component of | | | | | | | | | | convertible | | | | | | | | | | subordinated | | | | | | | | | | loan | | | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | 18 | | -18 | | 0 | | incentive | | | | | | | | | | schemes | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | | 605 | 318 | 923 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -3,865 | -165 | -4,03 | | paid | | | | | | | | 0 | -------------------------------------------------------------------------------- | Shareholders | 3,57 | | 2,69 | 448 | | 8,631 | 2,307 | 17,65 | | ' equity as | 2 | | 9 | | | | | 7 | | at 31st Jan. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders | 5,42 | -1,3 | 4,64 | 14,219 | 35 | 12,339 | 4,290 | 39,56 | | ' equity as | 4 | 94 | 7 | | | | | 0 | | at 31st Oct. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | 21 | | | | 21 | | incentive | | | | | | | | | | schemes | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | | 674 | 290 | 964 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -3,970 | -429 | -4,39 | | paid | | | | | | | | 9 | -------------------------------------------------------------------------------- | Acquisition | | -450 | | | | | | -450 | | of own | | | | | | | | | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Currency | | | | | -19 | | | -19 | | translation | | | | | | | | | | differences | | | | | | | | | -------------------------------------------------------------------------------- | Acquisition | | | | | | | 3,620 | 3,620 | | of minority | | | | | | | | | | interests | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 5,42 | -1,8 | 4,64 | 14,240 | 16 | 9,043 | 7,771 | 39,29 | | ' equity as | 4 | 44 | 7 | | | | | 7 | | at 31st Jan. | | | | | | | | | | 2008 | | | | | | | | | -------------------------------------------------------------------------------- KEY INDICATORS -------------------------------------------------------------------------------- | | 01/2008 | 01/2007 | 10/2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity per share, EUR | 0.71 | 0.52 | 0.79 | -------------------------------------------------------------------------------- | Average number of shares during the period, | 44,113 | 29,738 | 34,964 | | 1,000 | | | | -------------------------------------------------------------------------------- | Number of shares at end of period, 1,000 | 44,113 | 29,763 | 44,383 | -------------------------------------------------------------------------------- | Dividends paid/bonds converted during the | 0 | 2,310 | 15,466 | | period, 1,000 | | | | -------------------------------------------------------------------------------- | Average number of shares, 1,000 - diluted | 55,142 | 39,346 | 45,965 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 9.8 | 19.5 | 18.6 | -------------------------------------------------------------------------------- | Return on investment (ROI), % | 8.9 | 15.5 | 14.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross capital expenditure | | | | -------------------------------------------------------------------------------- | On non-current assets (MEUR) | 8.8 | 0.2 | 21.9 | -------------------------------------------------------------------------------- | % of net turnover | 27.7 | 1.0 | 24.1 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 52,361 | 10,621 | 50,653 | -------------------------------------------------------------------------------- | Equity ratio, % | 34.5 | 33.3 | 34.9 | -------------------------------------------------------------------------------- | Average number of employees | 727 | 526 | 571 | -------------------------------------------------------------------------------- Key indicators have been calculated eliminating own shares held by the company. GROUP'S QUARTERLY PERFORMANCE -------------------------------------------------------------------------------- | (EUR million) | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | -------------------------------------------------------------------------------- | | Q2/0 | Q3/0 | Q4/0 | Q1/0 | Q2/07 | Q3/07 | Q4/07 | Q1/08 | | | 6 | 6 | 6 | 7 | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net turnover | 12.5 | 14.0 | 19.9 | 16.7 | 16.0 | 27.1 | 31.0 | 31.6 | -------------------------------------------------------------------------------- | Other operating | 0.0 | 0.1 | 0.6 | 0.0 | 0.1 | 0.3 | 0.3 | 0.2 | | income | | | | | | | | | -------------------------------------------------------------------------------- | Total expenses | 11.7 | 12.5 | 17.1 | 15.0 | 13.4 | 24.3 | 27.0 | 29.4 | -------------------------------------------------------------------------------- | Depreciation and | 0.3 | 0.3 | 0.4 | 0.3 | 0.4 | 0.5 | 0.9 | 0.9 | | amortisation | | | | | | | | | -------------------------------------------------------------------------------- | Operating profit | 0.5 | 1.3 | 3.0 | 1.4 | 2.3 | 2.5 | 2.1 | 1.5 | -------------------------------------------------------------------------------- | Financial items | -0.1 | -0.1 | -0.1 | -0.1 | -0.1 | -0.3 | -0.3 | -0.3 | -------------------------------------------------------------------------------- | Profit before | 0.4 | 1.2 | 2.8 | 1.2 | 2.3 | 2.2 | 1.8 | 1.2 | | taxes | | | | | | | | | -------------------------------------------------------------------------------- | Taxes | -0.1 | -0.3 | -0.7 | -0.3 | -0.7 | -0.5 | -0.4 | -0.3 | -------------------------------------------------------------------------------- | Minority | -0.2 | -0.3 | -0.5 | -0.3 | -0.6 | -0.4 | -0.3 | -0.3 | | interest | | | | | | | | | -------------------------------------------------------------------------------- | Profit from | 0.1 | 0.6 | 1.7 | 0.6 | 1.0 | 1.3 | 1.1 | 0.7 | | continuing | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Profit from | 0.5 | 0.2 | 4.1 | 0.0 | 0.4 | 0.0 | 0.0 | 0.0 | | discontinued | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 0.6 | 0.8 | 5.8 | 0.6 | 1.4 | 1.3 | 1.0 | 0.7 | | period | | | | | | | | | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | EUR 1,000 | 01/2008 | 01/2007 | 2007 | -------------------------------------------------------------------------------- | Collateral given on behalf of group | | | | | companies | | | | -------------------------------------------------------------------------------- | Mortgages | 9,317 | 5,669 | 7,938 | -------------------------------------------------------------------------------- | Floating charges | 21,540 | 2,558 | 4,117 | -------------------------------------------------------------------------------- | Pledges given | 31,078 | 6,275 | 14,610 | -------------------------------------------------------------------------------- | Rental liabilities | 2,816 | 1,185 | 1,354 | -------------------------------------------------------------------------------- | Other liabilities | 1,120 | 60 | 514 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Amounts payable under lease contracts | | | | -------------------------------------------------------------------------------- | Payable within one year | 679 | 208 | 564 | -------------------------------------------------------------------------------- | Payable after one year but within five years | 726 | 247 | 852 | -------------------------------------------------------------------------------- The Group has entered into interest rate swaps at a nominal value of EUR 1.2 million. Liabilities have been measured at the nominal or book value of collateral. SEGMENT INFORMATION The Group's primary reporting segments are business segments. For the last reporting period, the Group reported on five business segments. The Group does not have a secondary reporting segment. -------------------------------------------------------------------------------- | EUR 1,000 | 01/2008 | 01/2007 | -------------------------------------------------------------------------------- | NET TURNOVER | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Industrial services | 4,569 | 2,477 | -------------------------------------------------------------------------------- | Joinery industry | 1,982 | 2,205 | -------------------------------------------------------------------------------- | Industrial construction | 5,654 | 6,636 | -------------------------------------------------------------------------------- | Wholesale trade | 10,113 | 3,564 | -------------------------------------------------------------------------------- | Takoma | 4,639 | | -------------------------------------------------------------------------------- | Other | 4,667 | 1,814 | -------------------------------------------------------------------------------- | Total | 31,624 | 16,696 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT/LOSS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Industrial services | 381 | 144 | -------------------------------------------------------------------------------- | Joinery industry | -72 | -61 | -------------------------------------------------------------------------------- | Industrial construction | 928 | 1,357 | -------------------------------------------------------------------------------- | Wholesale trade | 594 | 22 | -------------------------------------------------------------------------------- | Takoma | 36 | | -------------------------------------------------------------------------------- | Other | -328 | -95 | -------------------------------------------------------------------------------- | Total | 1,539 | 1,367 | -------------------------------------------------------------------------------- Panostaja Oyj is a multi-sector holding company. The company invests in Finnish small and medium-sized enterprises operating in traditional industries. Investments are mostly carried out through acquisitions. Panostaja Group invests business resources and strategic know-how in companies. The objective is to raise the target company to become a major player in its field according to a pre-determined schedule. Once this schedule has elapsed, the enterprise will continue to operate as an independent growth company. At present, the company operates in twelve business areas. Oy Alfa-Kem Ab manufactures and markets industrial chemicals, cleaning agents and institutional kitchen detergents. Arme Oy carries out industrial insulation, exterior cladding and scaffolding work. Heatmasters Group offers metal heat-treatment services domestically and internationally and manufactures, develops and markets heat-treatment technology. Fittings companies Suomen Helakeskus Oy and Seinäjoen Rakennustarvike ja Lukko Oy are key wholesalers of building and furniture hardware in Finland. Fastenings companies Helsingin Laaturuuvi Oy, Porin Pultti Oy and Ruuvipojat Oy serve retailers throughout Finland. KL-Varaosat companies specialise in import, wholesale and retail of OEM spare parts and accessories for Mercedes-Benz and BMW cars. LukkoExpert Security Oy is an expert in locks, door automation and security technology and services. Lämpö-Tukku Oy specialises in wholesale of heating, plumbing and ventilation equipment. Suomen Puunjalostus Oy operates in the joinery industry, with solid-wood interior doors and wooden staircases as its main products. Takoma Oyj is a listed mechanical engineering group based on an entrepreneur-driven business model. Toimex Oy manufactures and sells heating, plumbing and ventilation supports. Vallog Oy specialises in metal industry manufacturing and logistics services.