Period January - June 2007, continuing operations of Proha:
- Proha net sales grew by 29% and were EUR 22.9 million (17.8 million in
corresponding period 2006).
- The net sales for Dovre Consulting and Services division grew by 27% and were
EUR 21.0 (16.6) million.
- The net sales for Safran Systems division grew by 51% and were EUR 2.0 (1.3)
million.
- The operating result of Proha was EUR -0.3 (-0.8) million.
- The operating result for Dovre Consulting and Services division was EUR 1.0
(0.9) million. The operating result for Safran Systems division was EUR -0.7
(-0.3) million. The operating result for other operations was EUR -0.6 (-1.5)
million.
Period April - June 2007, continuing operations of Proha:
- The net sales increased by 15% and were EUR 11.8 million (EUR 10.3 million in
April - June 2006).
- The net sales of Dovre Consulting and Services division grew by 12% and were
EUR 10.9 (9.7) million.
- The net sales of Safran Systems division grew by 58% and were EUR 1.0 (0.6)
million.
- The operating result of Proha was EUR -0.4 (-0.9) million.
- The operating result for Dovre Consulting and Services division was EUR 0.4
(0.4) million. The operating result for Safran Systems division was -0.4 (-0.3)
million. The operating result for other operations was -0.4 (-1.0) million.
Period January - June 2007, Proha Group:
- The net sales decreased by 35% due to the divestment in 2006 and were EUR 22.9
million (EUR 35.0 million in January - June 2006).
- The operating result improved clearly and was EUR -0.3 million (The operating
result before non-recurring items EUR -3.4 million in January - June 2006).
Period April - June 2007, Proha Group:
- The net sales decreased by 37% due to the divestment in 2006 and were EUR 11.8
million (EUR 18.7 million in April - June 2006).
- The operating result improved clearly and was EUR -0.4 million (the operating
result before non-recurring items EUR -1.8 million in April - June 2006).
PROHA CEO PEKKA PERE:
During the first six months of 2007 Proha has focused on the international
expansion of the business of Dovre Consulting and Services division and in the
development of a new family of products within the Safran Systems division.
The net sales of Dovre Services and Consulting division have continued to grow
in the second quarter of 2007. However, there exists plenty of potential for
even stronger international growth in the markets. Special attention is paid to
improvement of profit margins and resourcing.
Safran Software division has continued to develop the new SafranOne family of
products. The first product launch was made in June as Proha introduced the new
project management portal solution at the International Project Management
Association World Congress in Cracow. Safran has invested strongly on product
development and international growth.
For the second half of 2007 the essential themes are strengthening of
international business and utilization of synergies between the divisions.
KEY RATIOS FOR THE CONTINUING OPERATIONS
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| million) | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 11,8 | 10,3 | 14,6 % | 22,9 | 17,8 | 28,6 % | 41,0 |
--------------------------------------------------------------------------------
| Operating | -0,4 | -0,9 | 55,2 % | -0,3 | -0,8 | 61,0 % | -0,3 |
| result | | | | | | | |
--------------------------------------------------------------------------------
| % of net | -3,5 % | -8,9 % | | -1,4 % | -4,8 % | | -0,8 % |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Result | -0,4 | -1,0 | 56,1 % | -0,4 | -1,0 | 59,2 % | -0,6 |
| before | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Result for | -0,5 | -1,1 | 54,9 % | -0,6 | -1,2 | 53,2 % | -1,1 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Return on | -12,8 | -27,3 | | -7,5 % | -15,6 % | | -7,1 % |
| equity % | % | % | | | | | |
--------------------------------------------------------------------------------
| Return on | -4,9 % | -16,8 | | -1,3 % | -7,7 % | | -0,7 % |
| investment | | % | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 10,9 | 2,7 | 298,5 | 10,9 | 2,7 | 298,5 % | 12,0 |
| cash | | | % | | | | |
| equivalent | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Debt to | -28,6 | 27,7 % | | -28,6 | 27,7 % | | -38,7 % |
| equity | % | | | % | | | |
| ratio % | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 46,1 % | 48,9 % | | 46,1 % | 48,9 % | | 47,0 % |
| ratio % | | | | | | | |
--------------------------------------------------------------------------------
| Basic | -0,008 | -0,018 | 54,8 % | -0,009 | -0,020 | 53,0 % | -0,018 |
| earnings | | | | | | | |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Diluted | -0,008 | -0,018 | 54,8 % | -0,009 | -0,020 | 53,0 % | -0,018 |
| earnings | | | | | | | |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 0,24 | 0,25 | -2,6 % | 0,24 | 0,25 | -2,6 % | 0,25 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
KEY RATIOS OF THE PROHA GROUP
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change % | 1-12 |
| million | 2007 | 2006 | % | 2007 | 2006 | | 2006 |
| ) | | | | | | | |
--------------------------------------------------------------------------------
| Net | 11,8 | 18,7 | -36,7 % | 22,9 | 35,0 | -34,6 % | 58,2 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Operati | -0,4 | 12,7 | -103,2 | -0,3 | 11,1 | -103,0 % | 11,6 |
| ng | | | % | | | | |
| result | | | | | | | |
--------------------------------------------------------------------------------
| % of | -3,5 % | 68,1 % | | -1,4 % | 31,8 % | | 20,0 % |
| net | | | | | | | |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Result | -0,4 | 13,3 | -103,2 | -0,4 | 11,6 | -103,3 % | 12,0 |
| before | | | % | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| Result | -0,5 | 13,0 | -103,7 | -0,6 | 10,9 | -105,2 % | 11,0 |
| for the | | | % | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Return | -12,8 | 575,1 | | -7,5 % | 218,8 % | | 111,2 % |
| on | % | % | | | | | |
| equity | | | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Return | -4,9 % | 317,1 | | -1,3 % | 133,8 % | | 72,8 % |
| on | | % | | | | | |
| invest- | | | | | | | |
| ment % | | | | | | | |
--------------------------------------------------------------------------------
| Cash | 10,9 | 2,7 | 298,5 % | 10,9 | 2,7 | 298,5 % | 12,0 |
| and | | | | | | | |
| cash | | | | | | | |
| equi-va | | | | | | | |
| lents | | | | | | | |
--------------------------------------------------------------------------------
| Debt to | -28,6 | 27,4 % | | -28,6 % | 27,4 % | | -38,2 % |
| equity | % | | | | | | |
| ratio % | | | | | | | |
--------------------------------------------------------------------------------
| Equity- | 46,1 % | 49,2 % | | 46,1 % | 49,2 % | | 47,3 % |
| ratio | | | | | | | |
--------------------------------------------------------------------------------
| Basic | -0,008 | 0,211 | -103,8 | -0,009 | 0,177 | -105,3 % | 0,179 |
| earning | | | % | | | | |
| s per | | | | | | | |
| share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Diluted | -0,008 | 0,211 | -103,8 | -0,009 | 0,177 | -105,3 % | 0,179 |
| earning | | | % | | | | |
| s per | | | | | | | |
| share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 0,24 | 0,25 | -2,6 % | 0,24 | 0,25 | -2,6 % | 0,25 |
| per | | | | | | | |
| share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
The interim report has been prepared according to IAS 34 standard and same
accounting principles have been applied as in the year 2006 financial
statements. The information presented in the interim report is unaudited.
Artemis sub-group, that was divested on June 30, 2006, was classified as
discontinued operations in the year-end financial statements of 2006. Thus the
year 2006 comparative figures present continuing and discontinued operations
separately. Proha Group has no discontinued operations in 2007 and consequently
the figures for the period January 1, - June 30, 2007 include the Group's
continuing operations only.
In 2006 Proha published its new strategy, according to which two divisions
(Dovre Consulting and Services Division and Safran Systems Division) were
established in the fourth quarter of 2006. The reporting structure for the Group
has been altered to follow the new divisional structure so that Dovre Consulting
and Services, Safran Systems, other operations as well as discontinued
operations each form a separate reporting business segment. Other operations
consist mainly of Proha Group administration. The figures for the review period
January 1, - June 30, 2007 together with their comparative data are presented
according to the new divisional structure.
BUSINESS PERFORMANCE
Proha's net sales mainly consist of oil and gas sector project management
business. Dovre Consulting and Services Division accounted for approximately 92%
(93%) and Safran Systems Division 8% (7%) of the net sales of the Group
continuing operations during the period January 1, - June 30, 2007.
Dovre Consulting and Services Division
Dovre Consulting and Services division consists of Norwegian Dovre International
AS and Dovre Fabcon AS together with their international subsidiaries. The
division delivers consulting and services within project management and supply
chain management globally.
In the first half of 2007, the majority of Dovre Consulting and Services
division business came from oil and gas sector, but the division companies are
also serving a wide range of other industries and sectors. In the first half of
2007, the demand in the oil and gas sector has continued strong.
The development of Dovre Consulting and Services division has continued steady
during the first six months of 2007. In Norway, the planned merger of Dovre's
two largest customers, Statoil and Norsk Hydro, has advanced as planned and it
has not impacted the operations of Dovre Consulting and Services division so
far. Existing frame agreements with Norsk Hydro have been extended. Also two
other frame agreements with another major oil company have been extended during
the first six months of 2007. Outside the oil and gas sector, Dovre has been
involved in several projects of the Norwegian Ministry of Finance as well as in
public sector and other energy projects. Otherwise the largest part of new
project contracts have been covered by the existing frame agreements.
The business operations in Canada have developed as planned. The required shift
in geographical focus of the project operations from North-East Canada to also
include oil sands projects in Alberta has advanced as planned.
In the USA, the project operations within the oil and gas industry have
continued. Dovre's business in the USA consists mainly of work done for the
large international oil companies like ExxonMobile, Chevron and ConocoPhillips.
Dovre is internationally involved in several of their largest projects e.g. in
the Sakhalin project, in West Africa and in China on Bohai Bay. Additionally,
Dovre have laid special focus on Asia and Singapore in last period.
Safran Systems division
Safran Systems business is operated by the parent company, Datamar Oy and
Norwegian Safran Software Solutions AS.
Safran Software Solutions AS develops and sells project management software
specifically for the needs of oil and gas industry and ship building industry.
On the second quarter of 2007 Safran established a new associated company Safran
North America with market focus in federal, airspace and defense and oil & gas
industries.
The Group parent company and Datamar Oy develop and sell products in the
SafranOne family of products, mobile solutions based on intelligent SMS
technology (iSMS) and RescuePlanner applications directed to safety and rescue
operations.
NET SALES
January - June 2007:
Net sales for Proha Group decreased by 35% due to divestment in 2006 and were
EUR 22.9 million (EUR 35.0 million in January - June 2006). However, the growth
of Dovre Consulting and Services division partially offset the decrease in Group
net sales.
Net sales for Proha continuing operations grew by 29% and were EUR 22.9 (17.8)
million. The net sales of Dovre Consulting and Services division grew by 27% and
were Eur 21.0 (16.6) million. The net sales of Safran Systems division grew by
51% and were EUR 2.0 (1.3) million.
April - June 2007:
The net sales for Proha Group decreased by 37% due to divestment in 2006 and
were EUR 11.8 (18.7) million.
The net sales for the continuing operations grew by 15% and were 11.8 (10.3)
million. The net sales for Dovre Consulting and Services division grew by 12%
and were 10.9 (9.7) million. The net sales for Safran systems division grew by
58% and were EUR 1.0 (0.6) million.
Distribution of net sales for the continuing operations by revenue type (EUR
million and % of net sales):
--------------------------------------------------------------------------------
| | 4-6 | % | 4-6 | % | 1-6 | % | 1-6 | % | 1-12 | % |
| | 200 | | 200 | | 2007 | | 2006 | | 2006 | |
| | 7 | | 6 | | | | | | | |
--------------------------------------------------------------------------------
| Service | 11, | 97, | 10, | 98,4 | 22,2 | 96,9 | 17,4 | 97,9 | 40,1 | 97,7 |
| s | 6 | 9 | 2 | | | | | | | |
--------------------------------------------------------------------------------
| One | 0,1 | 1,1 | 0,0 | 0,1 | 0,3 | 1,1 | 0,1 | 0,4 | 0,3 | 0,6 |
| time | | | | | | | | | | |
| license | | | | | | | | | | |
| revenue | | | | | | | | | | |
--------------------------------------------------------------------------------
| Recurri | 0,1 | 1,0 | 0,1 | 1,4 | 0,5 | 2,0 | 0,3 | 1,7 | 0,7 | 1,7 |
| ng | | | | | | | | | | |
| license | | | | | | | | | | |
| revenue | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 11, | 100 | 10, | 100, | 22,9 | 100, | 17,8 | 100, | 41,0 | 100,0 |
| | 8 | ,0 | 3 | 0 | | 0 | | 0 | | |
--------------------------------------------------------------------------------
In the period January 1, - June 30, 2007, the service revenue was EUR 22.2
(17.4) million or 97% (98%) of the net sales. In the period January 1, - June
30, 2007 the license sales amounted to EUR 0.7 (0.4) million, accounting for 3%
(2%) of the net sales.
In the period April 1, - June 30, 2007, the service revenue was EUR 11.6 (10.2)
million or 98% (98%) of the net sales. In the period April 1, - June 30, 2007
the license sales amounted to EUR 0.2 (0.2) million, accounting for 2% (2%) of
the net sales.
Distribution of net sales by segment:
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change % | 1-12 |
| million) | 2007 | 2006 | % | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dovre | 10,9 | 9,7 | 12,4 % | 21,0 | 16,6 | 27,0 % | 38,1 |
--------------------------------------------------------------------------------
| Safran | 1,0 | 0,6 | 58,3 % | 2,0 | 1,3 | 50,6 % | 3,0 |
--------------------------------------------------------------------------------
| Others | 0,0 | 0,1 | -100,9 | 0,0 | 0,1 | -86,2 % | 0,5 |
| | | | % | | | | |
--------------------------------------------------------------------------------
| Discontinue | 0,0 | 8,4 | -100,0 | | 17,2 | -100,0 % | 17,2 |
| d | | | % | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Inter-segme | -0,1 | -0,1 | -33,6 % | -0,2 | -0,3 | -28,6 % | -0,6 |
| nt net | | | | | | | |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Group total | 11,8 | 18,7 | -36,7 % | 22,9 | 35,0 | -34,6 % | 58,2 |
--------------------------------------------------------------------------------
Distribution of net sales by geographical segments:
--------------------------------------------------------------------------------
| (EUR million) | 4-6 | 4-6 2006 | 1-6 2007 | 1-6 2006 | 1-12 2006 |
| | 2007 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EMEA | 8,8 | 13,6 | 17,6 | 26,6 | 43,1 |
--------------------------------------------------------------------------------
| AMERICAS | 3,2 | 3,2 | 6,0 | 4,9 | 12,9 |
--------------------------------------------------------------------------------
| APAC | 0,3 | 1,9 | 0,8 | 3,5 | 5,4 |
--------------------------------------------------------------------------------
| Net sales between | -0,5 | 0,0 | -1,5 | 0,0 | -3,2 |
| segments | | | | | |
--------------------------------------------------------------------------------
| Group total | 11,8 | 18,7 | 22,9 | 35,0 | 58,2 |
--------------------------------------------------------------------------------
Distribution of net sales by geographical segments (% of net sales):
--------------------------------------------------------------------------------
| (% of net sales) | 4-6 2007 | 4-6 2006 | 1-6 2007 | 1-6 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EMEA | 74,3 % | 72,5 % | 77,1 % | 75,9 % | 74,0 % |
--------------------------------------------------------------------------------
| AMERICAS | 27,2 % | 17,3 % | 26,3 % | 14,0 % | 22,2 % |
--------------------------------------------------------------------------------
| APAC | 2,5 % | 10,0 % | 3,4 % | 10,1 % | 9,3 % |
--------------------------------------------------------------------------------
| Net sales between | -4,0 % | 0,2 % | -6,7 % | 0,0 % | -5,5 % |
| segments | | | | | |
--------------------------------------------------------------------------------
| Group total | 100,0 % | 100,0 % | 100,0 % | 100,0 % | 100,0 % |
--------------------------------------------------------------------------------
PROFITABILITY
Operating result, January - June 2007:
The operating result of Proha Group and the continuing operations was EUR -0.3
million. For the corresponding period in 2006, Group operating result of EUR
11.1 million consisted of the operating result for the continuing operations EUR
-0.8 million and that for the discontinued operations EUR 12.0 million.
The operating result of Dovre Consulting and Services Division was EUR 1.0 (0.9)
million. The operating result of Safran Systems Division was EUR -0.7 (-0.3)
million. The operating result for other operations was EUR -0.6 (-1.5) million.
Operating result, April - June 2007:
The operating result of Proha Group and the continuing operations was EUR -0.4
million. For the corresponding period in 2006, Group operating result of EUR
12.7 million consisted of the operating result for the continuing operations EUR
-0.9 million and that for the discontinued operations EUR 13.6 million.
The operating result of Dovre Consulting and Services Division was EUR 0.4 (0.4)
million. The operating result of Safran Systems Division was EUR -0.4 (-0.3)
million. The operating result for other operations was EUR -0.4 (-1.0) million.
The operating result for other operations consisted mainly of the expenses for
the Group administration.
Distribution of operating result by segment:
--------------------------------------------------------------------------------
| (EUR million) | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dovre | 0,4 | 0,4 | 15,0 | 1,0 | 0,9 | 8,8 | 2,2 |
--------------------------------------------------------------------------------
| Safran | -0,4 | -0,3 | -62,4 | -0,7 | -0,3 | -125,7 | -0,6 |
--------------------------------------------------------------------------------
| Others | -0,4 | -1,0 | 62,0 | -0,6 | -1,5 | 56,1 | -2,0 |
--------------------------------------------------------------------------------
| Continuing | -0,4 | -0,9 | 55,2 | -0,3 | -0,8 | 61,0 | -0,3 |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Discontinued | 0,0 | 13,6 | -100,0 | 0,0 | 12,0 | -100,0 | 12,0 |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Group total | -0,4 | 12,7 | -103,2 | -0,3 | 11,1 | -103,0 | 11,6 |
--------------------------------------------------------------------------------
Result for January 1, - June 30, 2007:
In the period January 1, - June 30 2007, the result before tax for Proha Group
was EUR -0.4 (11.6) million and after tax EUR -0.6 (10.9) million. For the
continuing operations the result before taxes was EUR -0.4 (-1.0) million and
result after tax was EUR -0.6 (-1.2) million.
Earnings per share
Group earnings per share was EUR -0.009 (0.177). For the continuing operations
the earnings per share were EUR -0.009 (-0.020).
Group return on investment (ROI) was -1.3% (133.8%). The return on investment
(ROI) for the continuing operations was -1.3% (-7.7%).
CASH FLOW, FINANCING AND INVESTMENTS
On June 30, 2007, the Group balance sheet total was EUR 33.0 (31.6) million.
On June 30, 2007, the cash and cash equivalents for the Group and continuing
operations totaled EUR 10.9 (2.7) million.
In the period January 1, - June 30, 2007, cash flow from operating activities
was EUR -1.0 (-0.6) million. The cash flow from operating activities was
decreased by the increase of EUR 0.8 million in current non-interest bearing
receivables.
The cash flow of investments was EUR -0.3 (-5.7) million in the period January
1, - June 30, 2007. The gross investments totaled EUR 0.3 (2.1) million. The
gross investments include capitalized software development expenses of EUR 0.2
(0.0) million.
The balance sheet goodwill totaled EUR 4.9 (4.9) million on June 30, 2007. The
Group's goodwill is not amortized but tested for impairment under IAS 36. No
indications of impairment of assets exist.
In the period January 1, - June 30, 2007, the cash flow of financing activities
was EUR 0.3 (1.7) million. Total of EUR 0.9 (2.1) million new loans were drawn.
A total of EUR 0.6 (0.4) million loans were repaid.
Group equity ratio was 46.1% (49.2%) and debt to equity ratio was -28.6%
(27.4%). On June 30, 2007, the interest-bearing liabilities amounted to EUR 6.6
(7.0) million, accounting for 20.0% (22.0%) of the Group's shareholders' equity
and liabilities total. Of the interest-bearing liabilities, EUR 1.7 (5.8)
million were non-current liabilities and EUR 4.9 (1.2) million current
liabilities. The Group's Quick Ratio was 1.6 (2.4).
RESEARCH AND DEVELOPMENT
The research and development expenses for the Group continuing operations were
EUR 0.8 (0.2) million accounting for 4% (3%) of the net sales of the continuing
operations. In the period January 1, - June 30, 2006, the research and
development expenses EUR 3.4 million consisted of EUR 0.4 million of the
research and development expenses for the continuing operations and EUR 3.0
million of the research and development expenses for the discontinued
operations. In the period January 1, - June 30, 2007, EUR 0.2 (0.0) million of
research and development costs were capitalized.
In the first quarter of 2007, a new version of SafranOne technical platform was
released. SafranOne is used as the platform for the separate Safran portal
solutions.
In May, 2007 the international central organization of project management
associations IPMA (International Project Management Association) chose SafranOne
solution developed by Proha as its medium for member communication and Internet
platform. Also IPMA's intranet and extranet functions such as documents
distribution and common calendar are managed by SafranOne.
In June 2007, Proha launched its new project management portal solution at the
International Project Management Association World Congress in Cracow.
The further development of Proha's Safran Project and Safran for Microsoft
Project continued as planned.
The implementation project at Oulu-Koillismaa rescue department is proceeding
according to plan for RescuePlanner developed by Proha for resource management
at rescue departments. The application of Proha's mobile solution is extended at
Helsinki Rescue department also for urgent communication between various
authorities.
PERSONNEL
In January 1, - June 30, 2007, the staff costs for the Group and continuing
operations amounted to EUR 21.1 million and EUR 11.0 million in April 1, - June
30, 2007. For the continuing operations the staff costs constituted 92% (93%) of
the net sales for the period January 1,- June 30, 2007 and 93% (95%) for the
period April 1, - June 30, 2007. In January 1, - June 30, 2006, the Group staff
costs EUR 28.7 million constituted of EUR 16.5 million of the staff costs of the
continuing operations and EUR 12.2 million of the staff costs of the
discontinued operations.
Distribution of personnel by segment (average):
--------------------------------------------------------------------------------
| Personnel | 4-6 | 4-6 | Change % | 1-6 | 1-6 | Change % | 1-12 |
| | 2007 | 2006 | | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Dovre | 263 | 234 | 12,4 % | 263 | 209 | 25,7 % | 237 |
--------------------------------------------------------------------------------
| Safran | 52 | 44 | 16,5 % | 52 | 42 | 23,4 % | 46 |
--------------------------------------------------------------------------------
| Other | 7 | 9 | -25,0 % | 6 | 9 | -32,7 % | 18 |
--------------------------------------------------------------------------------
| Discontinu | 0 | 283 | -100,0 % | 0 | 288 | -100,0 % | 168 |
| ed | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Total | 322 | 571 | -43,6 % | 322 | 549 | -41,4 % | 469 |
--------------------------------------------------------------------------------
On June 30, 2007, the Proha Group employed 323 (312) people worldwide. The
average number of Group personnel was 322 (549) for the period January 1, - June
30, 2007.
DECISIONS OF PROHA ANNUAL GENERAL MEETING OF SHAREHOLDERS
On April 18, 2007 the Annual General Meeting of Proha Plc made the following
decisions:
1. The issues inherent to the Annual General Meeting under section 11 of the
Articles of Association
The Annual General Meeting confirmed the 2006 Financial Statements and
discharged the Board of Directors and CEO from liability. The Annual General
Meeting approved the Board of Directors' proposal that the net result for the
financial period be transferred to profit/loss brought forward account and no
dividend is paid.
The Annual General Meeting decided to alter the number of Board members to four.
Proha CEO Pekka Pere and Pekka Mäkelä resigned from the Board. Mr. Gjalt de
Vries was elected as a new member to the Board. Mr. de Vries is a citizen of the
Netherlands. Olof Ödman, Birger Flaa and Ernst Jilderda continue as members of
the Proha Board.
The Annual General Meeting decided that, following the present practice, the
Chairman of the Board be paid EUR 18,000 and each Board member, at the moment of
election not employed by the Proha Group or by such company which owns more than
five percents of Proha's share capital and who does not exercise dominant
influence over such company, to be paid EUR 10,000 per year as remuneration for
board work. Additionally, it was decided that the auditors will be paid in
accordance with a reasonable invoice.
Ernst & Young Oy was elected to continue as the Company's auditor, with Ulla
Nykky, APA, as the auditor in charge.
2. Amendment of the Articles of Association
The Annual General Meeting decided to amend the Articles of Association due to
the new Companies Act, effective as of September 1, 2006 as proposed by the
Board as follows:
- Article 4 containing provisions on minimum and maximum share capital as well
as the number of shares was removed.
- The provisions on record date from Article 5 were removed.
- The provisions in Article 8 on the right to represent the Company were amended
to align with the terminology of the new law.
- The list of agenda items of the Annual General Meeting in Article 11 was
amended to correspond to the new law.
- The provisions in Article 13 on the notice period of the Annual General
Meeting were amended to the effect that the notice must be published no earlier
than three (3) months prior to the latest date of registration. Also the method
of notice is amended so that as an alternative to publishing the notice in a
nationally published newspaper, the notice can be sent in writing. Previously,
the alternative method of notice has been a registered letter.
In addition, the Company's field of business (Article 3) was expanded to include
consulting in business management and engineering. The new articles of
association were presented in the appendix of stock exchange bulletin on March
28, 2007.
3. Recording the subscription prices for shares issued based on stock options in
the fund for invested non-restricted equity
The Annual General Meeting decided to complete the terms and conditions of Proha
Stock Option Plans 2005 and 2006 to the effect that the total amount of the
subscription prices paid for new shares issued after the date of the General
Meeting, based on stock options under Plans 2005 and 2006, be recorded in the
fund for invested non-restricted equity.
4. Option rights to key personnel and Board of Directors
The Annual General Meeting approved without changes the Board proposition to
issue a maximum of 2,110,000 option rights, that are offered deviating from the
shareholders' pre-emptive subscription right to the Board of Directors and to
the key personnel of the Group companies.
The subscription of the option rights began immediately and will end on April
17, 2008. The proposed share subscription price will be the weighted average
price of Proha share within the period of 30 days before the General Meeting,
from March 19 through April 17, 2007, i.e. EUR 0.37. The exercise period of the
option rights for share subscription will commence in steps between years 2008
and 2010 and will end on May 31, 2011. If only newly issued shares are used for
share subscriptions, the shares subscribed under the Stock Option Plan 2007
constitute a maximum of 3.33 percent of the total number of Proha shares after
the subscription. The complete terms and conditions are presented in the
appendix of stock exchange bulletin on March 28, 2007.
5. Board of Directors' proposal to authorize the Board of Directors to resolve
on the issuance of shares and special rights entitling to shares
The Annual General Meeting authorized the Board of Directors to resolve to issue
a maximum of 12,243,734 shares through issuance of shares or special rights
entitling to shares (including stock options) under Chapter 10, Section 1 of the
Companies Act, in one or more issues. The authorization includes both the
issuance of new shares as well as shares held by the Company, and corresponded
to 20 percent of the Company's total number of shares at the date of the Annual
General Meeting.
The authorization may be used to finance or execute acquisitions or other
arrangements, to carry out equity-based incentive plans, or to other purposes
resolved by the Board. The authorization includes the right for the Board to
decide on all the terms and conditions of the issuance of shares or special
rights under Chapter 10, Section 1 of the Companies Act, including to whom
shares or special rights may be issued as well as the consideration to be paid.
The authorization thereby includes the right for issuance in deviation from the
shareholders' pre-emptive rights within the limits set by law.
The authorization is effective until April 17, 2012.
CORPORATE GOVERNANCE
Proha Plc follows the recommendations of the Helsinki Stock Exchange, the
Central Chamber of Commerce and the Confederation of Finnish Industries and
Employers regarding the corporate governance of publicly held companies. Proha
makes two exceptions from the recommendation: 1) Proha Board of Directors
comprises of four members and 2) A share-based bonus system may also be applied
to those members of the Board, who do not have an employment relationship with
the company. Proha's corporate governance principles can be found on the
company's website at www.proha.com.
SHARE CAPITAL AND AUTHORIZATIONS TO ISSUE SHARES
Proha Plc has one class of shares. The book value of the shares is EUR 0.26 per
share. Each share entitles the shareholder to one vote. Proha Plc shares are
traded on the Nordic Exchange of OMX Group.
On January 1, 2007, the subscribed capital of Proha Plc was EUR 15,916,854.20
and the number of shares is 61,218,670. No changes were made on the share
capital during the period under review.
No shares were subscribed for with Proha Plc's option during the period under
review.
The option plans 2002 and 2003 ended on April 1, 2007. A total of 500 shares
were subscribed for under the plan 2002 and no shares were subscribed for under
the plan 2003.
The Annual General Meeting authorized the Board of Directors to resolve to issue
a maximum of 12,243,734 shares through issuance of shares or special rights
entitling to shares (including stock options) under Chapter 10, Section 1 of the
Companies Act, in one or more issues. The authorization includes both the
issuance of new shares as well as shares held by the Company, and corresponded
to 20 percent of the Company's total number of shares at the date of the Annual
General Meeting. The authorization is effective until April 17, 2012.
The Annual General Meeting approved without changes the Board proposition to
issue a maximum of 2,110,000 option rights, that are offered deviating from the
shareholders' pre-emptive subscription right to the Board of Directors and to
the key personnel of the Group companies.
In its meeting on June 28, 2007, Proha Board of Directors approved subscriptions
of the option issue. A total of 1,707,000 Proha Plc stock options were
subscribed, entitling to the subscription of 1,707,000 shares.
The subscription of the option rights began on April 18, 2007 and will end on
April 17, 2008. The share subscription price is EUR 0.37 i.e. the weighted
average price of Proha share within the period of 30 days before the General
Meeting, from March 19 through April 17, 2007. The exercise period of the option
rights for share subscription will commence in steps between years 2008 and 2010
and will end on May 31, 2011. The complete terms and conditions are presented in
the appendix of stock exchange bulletin on March 28, 2007.
TRADING ON THE HELSINKI STOCK EXCHANGE
The number of registered shareholders of Proha Plc totaled 3,541 on June 30,
2007. In the period January 1, - June 30, 2007, the share price was EUR 0.35 at
its lowest and EUR 0.45 at its highest. The closing price on June 29, 2007 was
EUR 0.39. Market capitalization was approximately EUR 23.9 million at the end of
the period under review. The trading volume of the Proha share on the OMX Nordic
Exchange was approximately EUR 9.0 million during the period under review. Proha
Plc has liquidity providing agreement with Remium AB for the Proha share.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand in oil and gas sector together with the level of investments in the
sector impact the success of Dovre Consulting and Services division. The
companies operating in oil and gas industry are challenged also by the adequacy
of resources and added personnel turnover.
General competitive situation and technological solutions developed by the
competition impact the business of Safran Systems division. The profitable
growth for Safran business call for successful creation of international
distribution and partner networks.
The development of Proha's international business includes also possible
acquisitions and shareholdings in companies operating in the field. Such
strategic acquisitions always include risks. They are being managed, among
others, by ensuring that the size of acquisitions is reasonable.
PROSPECTS FOR 2007
According to the strategy Proha seeks international growth and profitability by
concentrating on project management services and software and by emphasizing the
synergies between the group businesses.
Though the focus of Proha business will continue to be in demanding oil and gas
industry companies and projects, the company will also expand its business
operations in other industries.
Especially the developments in the oil and gas market sector impact the future
development. The high energy prices and strong demand are anticipated to
continue. They will keep the number of international investments in the field
high. The development of Proha's present software business is impacted by the
general development of IT markets and, following the new partnership strategy,
by the advancement of Microsoft's new products in the markets.
The general outlook is good for business development of Dovre Consulting and
Services division. The consulting and services business is anticipated to
continue developing favorably. The recruiting of experienced consultants remains
challenging.
In 2007 the focus areas of Safran Systems division are software products
development as well as building and strengthening of international delivery and
partnership networks. To strengthen the network Proha's Growth Ventures
operations aim to make strategic acquisition at a low risk level that will
create basis for rapid growth in the future around the world.
In 2007 the comparable net sales of the Group are anticipated to grow from the
previous year. The profitability of Dovre Consulting and Services division is
anticipated to remain on the same level as in 2006. Due to investments made by
Safran Systems division its operating result will remain negative. The Group
administrative expenses are anticipated to decline somewhat from the level of
2006. The Group operating result for 2007 is anticipated to be negative.
PRESS CONFERENCE
Proha Plc will hold a press conference for the media and financial
analysts on August 9, 2007 at 12.00 a.m., in Cabinet 1 at
World Trade Center, address Aleksanterinkatu 17, Helsinki.
More information
PROHA PLC
CEO Pekka Pere, tel +358 (0)20 4362 000
pekka.pere@proha.com
www.proha.com
DISTRIBUTION:
Helsinki Stock Exchange
Major Media
GROUP INCOME STATEMENT AND BALANCE SHEET JANUARY 1 - JUNE 30, 2007
The figures are unaudited.
GROUP INCOME STATEMENT
--------------------------------------------------------------------------------
| CONTINUING | | | | | | |
| OPERATIONS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| thousand) | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 11 821 | 10 | 14,6 | 22 863 | 17 780 | 28,6 | 41 021 |
| | | 316 | | | | | |
--------------------------------------------------------------------------------
| Other | 8 | 34 | -76,6 | 31 | 177 | -82,2 | 392 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | -472 | 100,0 | | -472 | 100,0 | -472 |
| disposal of | | | | | | | |
| discontinue | | | | | | | |
| d | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Material | -12 | -123 | -90,3 | -40 | -126 | -68,0 | -85 |
| and | | | | | | | |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee | -11 | -9 | 12,4 | -21 120 | -16 524 | 27,8 | -37 887 |
| benefits | 043 | 825 | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Depreciatio | -99 | -92 | 8,0 | -188 | -178 | 5,8 | -374 |
| n and | | | | | | | |
| amortisatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| Other | -1 085 | -753 | 44,1 | -1 875 | -1 501 | 24,9 | -2 920 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | -410 | -915 | 55,2 | -330 | -846 | 61,0 | -326 |
| RESULT | | | | | | | |
--------------------------------------------------------------------------------
| Financing | 200 | 7 | | 243 | 14 | | 222 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financing | -159 | -62 | 158,0 | -251 | -125 | 101,5 | -539 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | -57 | | | -52 | | | -2 |
| result in | | | | | | | |
| associates | | | | | | | |
--------------------------------------------------------------------------------
| RESULT | -426 | -970 | 56,1 | -390 | -956 | 59,2 | -645 |
| BEFORE TAX | | | | | | | |
--------------------------------------------------------------------------------
| Tax on | -58 | -103 | -43,7 | -179 | -259 | -30,8 | -455 |
| income from | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR | -484 | -1 | 54,9 | -569 | -1 215 | 53,2 | -1 100 |
| THE PERIOD | | 073 | | | | | |
--------------------------------------------------------------------------------
| ALLOCATION | | | | | | | |
| OF RESULT | | | | | | | |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Result | -490 | -1 | 54,8 | -578 | -1 230 | 53,0 | -1 108 |
| attributabl | | 085 | | | | | |
| e to equity | | | | | | | |
| holders of | | | | | | | |
| the parent | | | | | | | |
--------------------------------------------------------------------------------
| Result | 6 | 12 | -49,5 | 9 | 15 | -39,1 | 8 |
| attributabl | | | | | | | |
| e to | | | | | | | |
| minority | | | | | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| | -484 | -1 | 54,9 | -569 | -1 215 | 53,2 | -1 100 |
| | | 073 | | | | | |
--------------------------------------------------------------------------------
| Earnings/sh | -0,008 | -0,01 | 54,8 | -0,009 | -0,020 | 53,0 | -0,018 |
| are | | 8 | | | | | |
| (undiluted) | | | | | | | |
| , EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings/sh | -0,008 | -0,01 | 54,8 | -0,009 | -0,020 | 53,0 | -0,018 |
| are | | 8 | | | | | |
| (diluted), | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| thousand) | 2007 | 2006 | % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | | 8 357 | -100,0 | | 17 195 | -100,0 | 17 195 |
--------------------------------------------------------------------------------
| Other | | 79 | -100,0 | | 116 | -100,0 | 116 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | 15 006 | -100,0 | | 15 006 | -100,0 | 15 006 |
| disposal of | | | | | | | |
| discontinue | | | | | | | |
| d | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Material | | -784 | -100,0 | | -1 744 | -100,0 | -1 744 |
| and | | | | | | | |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee | | -5 880 | -100,0 | | -12 210 | -100,0 | -12 210 |
| benefits | | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Depreciatio | | | | | | | |
| n and | | | | | | | |
| amortisatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| Other | | -3 139 | -100,0 | | -6 402 | -100,0 | -6 402 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | | 13 640 | -100,0 | | 11 961 | -100,0 | 11 961 |
| RESULT | | | | | | | |
--------------------------------------------------------------------------------
| Financing | | 709 | -100,0 | | 1 004 | -100,0 | 1 004 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financing | | -60 | -100,0 | | -369 | -100,0 | -369 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | | | | | |
| result in | | | | | | | |
| associates | | | | | | | |
--------------------------------------------------------------------------------
| RESULT | | 14 289 | -100,0 | | 12 596 | -100,0 | 12 596 |
| BEFORE TAX | | | | | | | |
--------------------------------------------------------------------------------
| Tax on | | -237 | -100,0 | | -489 | -100,0 | -489 |
| income from | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR | | 14 052 | -100,0 | | 12 106 | -100,0 | 12 106 |
| THE PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| ALLOCATION | | | | | | | |
| OF RESULT | | | | | | | |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Result | | 14 031 | -100,0 | | 12 070 | -100,0 | 12 070 |
| attributabl | | | | | | | |
| e to equity | | | | | | | |
| holders of | | | | | | | |
| the parent | | | | | | | |
--------------------------------------------------------------------------------
| Result | | 21 | -100,0 | | 36 | -100,0 | 36 |
| attributabl | | | | | | | |
| e to | | | | | | | |
| minority | | | | | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| | | 14 052 | -100,0 | | 12 106 | -100,0 | 12 106 |
--------------------------------------------------------------------------------
| Earnings/sh | | 0,229 | | | 0,197 | | 0,197 |
| are | | | | | | | |
| (undiluted) | | | | | | | |
| , EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings/sh | | 0,229 | | | 0,197 | | 0,197 |
| are | | | | | | | |
| (diluted), | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
GROUP TOTAL
--------------------------------------------------------------------------------
| (EUR | 4-6 | 4-6 | Chang | 1-6 | 1-6 | Change | 1-12 |
| thousand) | 2007 | 2006 | e % | 2007 | 2006 | % | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 11 821 | 18 673 | -36,7 | 22 863 | 34 974 | -34,6 | 58 215 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 8 | 113 | -93,0 | 31 | 293 | -89,3 | 508 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | 14 534 | -100, | | 14 534 | -100,0 | 14 534 |
| disposal of | | | 0 | | | | |
| discontinue | | | | | | | |
| d | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Material | -12 | -907 | -98,7 | -40 | -1 871 | -97,8 | -1 829 |
| and | | | | | | | |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee | -11 | -15 | -29,7 | -21 120 | -28 734 | -26,5 | -50 097 |
| benefits | 043 | 705 | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Depreciatio | -99 | -92 | 8,0 | -188 | -178 | 5,8 | -374 |
| n and | | | | | | | |
| amortisatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| Other | -1 085 | -3 892 | -72,1 | -1 875 | -7 903 | -76,3 | -9 322 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | -410 | 12 725 | -103, | -330 | 11 115 | -103,0 | 11 635 |
| RESULT | | | 2 | | | | |
--------------------------------------------------------------------------------
| Financing | 200 | 716 | -72,1 | 243 | 1 019 | -76,1 | 1 227 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financing | -159 | -122 | 30,9 | -251 | -494 | -49,2 | -908 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share of | -57 | | | -52 | | | -2 |
| result in | | | | | | | |
| associates | | | | | | | |
--------------------------------------------------------------------------------
| RESULT | -426 | 13 319 | -103, | -390 | 11 640 | -103,3 | 11 951 |
| BEFORE TAX | | | 2 | | | | |
--------------------------------------------------------------------------------
| Tax on | -58 | -340 | -82,9 | -179 | -748 | -76,0 | -944 |
| income from | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR | -484 | 12 979 | -103, | -569 | 10 892 | -105,2 | 11 007 |
| THE PERIOD | | | 7 | | | | |
--------------------------------------------------------------------------------
| ALLOCATION | | | | | | | |
| OF RESULT | | | | | | | |
| FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Result | -490 | 12 946 | -103, | -578 | 10 841 | -105,3 | 10 962 |
| attributabl | | | 8 | | | | |
| e to equity | | | | | | | |
| holders of | | | | | | | |
| the parent | | | | | | | |
--------------------------------------------------------------------------------
| Result | 6 | 33 | -82,2 | 9 | 51 | -82,4 | 45 |
| attributabl | | | | | | | |
| e to | | | | | | | |
| minority | | | | | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| | -484 | 12 979 | -103, | -569 | 10 892 | -105,2 | 11 007 |
| | | | 7 | | | | |
--------------------------------------------------------------------------------
| Earnings/sh | -0,008 | 0,211 | -103, | -0,009 | 0,177 | -105,3 | 0,179 |
| are | | | 8 | | | | |
| (undiluted) | | | | | | | |
| , EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings/sh | -0,008 | 0,211 | -103, | -0,009 | 0,177 | -105,3 | 0,179 |
| are | | | 8 | | | | |
| (diluted), | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
GROUP BALANCE SHEET
--------------------------------------------------------------------------------
| (EUR thousand) | 30.6. | 30.6. | Change % | 31.12.200 |
| | 2007 | 2006 | | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 2 118 | 2 133 | -0,7 | 1 999 |
--------------------------------------------------------------------------------
| Goodwill | 4 911 | 4 909 | 0,0 | 4 758 |
--------------------------------------------------------------------------------
| Tangible assets | 209 | 257 | -18,7 | 216 |
--------------------------------------------------------------------------------
| Investments in associates | 980 | 962 | 1,9 | 982 |
--------------------------------------------------------------------------------
| Available-for-sale | 48 | 39 | 0,2 | 36 |
| investments | | | | |
--------------------------------------------------------------------------------
| Non-current trade and | 192 | 373 | -48,5 | 130 |
| other receivables | | | | |
--------------------------------------------------------------------------------
| Deferred tax asset | 253 | 97 | 159,4 | 208 |
--------------------------------------------------------------------------------
| Non-current assets | 8 711 | 8 772 | -0,7 | 8 328 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Trade receivables and | 13 339 | 20 100 | -33,6 | 12 339 |
| other receivables | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 10 902 | 2 736 | 298,5 | 12 022 |
--------------------------------------------------------------------------------
| Current assets | 24 241 | 22 836 | 6,2 | 24 361 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 32 952 | 31 608 | 4,3 | 32 689 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 15 917 | 15 917 | 0,0 | 15 917 |
--------------------------------------------------------------------------------
| Share premium account | 4 379 | 4 379 | 0,0 | 4 379 |
--------------------------------------------------------------------------------
| Fair value reserve | 361 | 407 | -11,5 | 368 |
| and other reserves | | | | |
--------------------------------------------------------------------------------
| Translation differences | 251 | 268 | -6,2 | 38 |
--------------------------------------------------------------------------------
| Retained earnings | -5 980 | -5 652 | -5,8 | -5 497 |
--------------------------------------------------------------------------------
| Equity attributable to | 14 927 | 15 319 | -2,6 | 15 205 |
| equity holders of the parent | | | | |
--------------------------------------------------------------------------------
| Minority interest | 110 | 116 | -5,0 | 112 |
--------------------------------------------------------------------------------
| Shareholders' equity | 15 037 | 15 434 | -2,6 | 15 316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 492 | 543 | -9,5 | 491 |
--------------------------------------------------------------------------------
| Long-term liabilities, | 1 702 | 5 791 | -70,6 | 1 958 |
| interest-bearing | | | | |
--------------------------------------------------------------------------------
| Liabilities from defined | 530 | 148 | 259,2 | 379 |
| benefit plan | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 2 724 | 6 482 | -58,0 | 2 828 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Short-term interest- | 4 898 | 1 167 | 319,6 | 4 205 |
| bearing liabilities | | | | |
--------------------------------------------------------------------------------
| Trade payables and other | 9 848 | 8 051 | 22,3 | 9 783 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Tax liability, income tax | 446 | 473 | -5,6 | 556 |
--------------------------------------------------------------------------------
| Current liabilities | 15 192 | 9 691 | 56,8 | 14 545 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 32 952 | 31 608 | 4,3 | 32 689 |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1-6/2007
--------------------------------------------------------------------------------
| (EUR | Sha- | Shar | Fair | Trnsl | Re- | Total | Mino | Total |
| thousand) | re | e | value | diff. | tai | | rity | |
| | capi- | pre- | reserv | | ned- | | intr | |
| | tal | mium | e | | earn- | | | |
| | | ac- | and | | ings | | | |
| | | coun | other | | | | | |
| | | t | reserv | | | | | |
| | | | e | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 | 4 | 368 | 38 | -5 497 | 15 205 | 112 | 15 316 |
| RS' EQUITY | 917 | 379 | | | | | | |
| 1.1.2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 12 | 213 | 43 | 268 | -12 | 256 |
| translatio | | | | | | | | |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | 26 | 26 | | 26 |
| based | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Transfers | | | -26 | | 26 | | | |
| between | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | 6 | | | 6 | | 6 |
| changes | | | | | | | | |
--------------------------------------------------------------------------------
| NET | | | -7 | 213 | 94 | 300 | -12 | 288 |
| PROFITS | | | | | | | | |
| /LOSSES | | | | | | | | |
| RECOGNIZED | | | | | | | | |
| DIRECTLY | | | | | | | | |
| TO | | | | | | | | |
| SHAREHOLDE | | | | | | | | |
| RS' EQUITY | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -578 | -578 | 10 | -568 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | | | -7 | 213 | -483 | -278 | -2 | -279 |
| PROFITS | | | | | | | | |
| AND LOSSES | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 | 4 | 361 | 251 | -5 980 | 14 927 | 110 | 15 037 |
| RS' EQUITY | 917 | 379 | | | | | | |
| 30.6.2007 | | | | | | | | |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 1-6/2006
--------------------------------------------------------------------------------
| (EUR | Sha- | Shar | Re- | Trnsl | Re- | Total | Mino | Total |
| thousand) | re | e | valu- | diff. | tai | | rity | |
| | capi- | pre- | ation | | ned- | | intr | |
| | tal | mium | re- | | earn- | | | |
| | | ac- | serve | | ings | | | |
| | | coun | | | | | | |
| | | t | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 | 4 | 430 | 463 | -17 | 4 400 | 73 | 4 473 |
| RS' EQUITY | 917 | 808 | | | 219 | | | |
| 1.1.2006 | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 3 | 49 | -9 | 43 | | 43 |
| translatio | | | | | | | | |
| n | | | | | | | | |
| difference | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | 35 | 35 | | 35 |
| based | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Transfers | | | -26 | | 26 | | | |
| between | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | -429 | | -244 | 673 | | -50 | -50 |
| of Artemis | | | | | | | | |
--------------------------------------------------------------------------------
| Fabcon | | | | | | | 57 | 57 |
| acquisitio | | | | | | | | |
| n | | | | | | | | |
--------------------------------------------------------------------------------
| NET | | -429 | -23 | -196 | 726 | 78 | 7 | 85 |
| PROFITS | | | | | | | | |
| /LOSSES | | | | | | | | |
| RECOGNIZED | | | | | | | | |
| DIRECTLY | | | | | | | | |
| TO | | | | | | | | |
| SHAREHOLDE | | | | | | | | |
| RS' EQUITY | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | 10 841 | 10 841 | 51 | 10 892 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | | -15 | -15 |
| distributi | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | | -429 | -23 | -196 | 11 567 | 10 919 | 43 | 10 961 |
| PROFITS | | | | | | | | |
| AND LOSSES | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 | 4 | 407 | 268 | -5 652 | 15 319 | 116 | 15 434 |
| RS'EQUITY | 917 | 379 | | | | | | |
| 30.6.2006 | | | | | | | | |
--------------------------------------------------------------------------------
GROUP CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| (EUR thousand) | 1-6 2007 | 1-6 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| | Operating result | -330 | 11 115 | 11 635 |
--------------------------------------------------------------------------------
| | Adjustments | | | |
--------------------------------------------------------------------------------
| | | Disposal of Artemis | | -11 292 | -11 292 |
--------------------------------------------------------------------------------
| | | Other operating income | | | -71 |
--------------------------------------------------------------------------------
| | | Depreciation and amortisation | 162 | 35 | 319 |
--------------------------------------------------------------------------------
| | | Employee benefits expense | 188 | 178 | 374 |
--------------------------------------------------------------------------------
| | | Other adjustments | | 71 | -99 |
--------------------------------------------------------------------------------
| | Adjustments, total | 350 | -11 008 | -10 769 |
--------------------------------------------------------------------------------
| | Changes in net working capital | | | |
--------------------------------------------------------------------------------
| | | Increase (-) / decrease (+)in | -848 | -419 | -3 860 |
| | | current receivables | | | |
--------------------------------------------------------------------------------
| | | Increase (+) / decrease (-)in | -21 | 35 | 3 045 |
| | | current liabilities | | | |
--------------------------------------------------------------------------------
| | | Other adjustments | | -119 | |
--------------------------------------------------------------------------------
| | Changes in net working | -869 | -503 | -815 |
| | capital,total | | | |
--------------------------------------------------------------------------------
| | Interest paid | -112 | -108 | -555 |
--------------------------------------------------------------------------------
| | Interest received | 263 | 12 | 267 |
--------------------------------------------------------------------------------
| | Other financial expenses paid | -37 | -418 | -355 |
--------------------------------------------------------------------------------
| | Other financial income received | 10 | 388 | 373 |
--------------------------------------------------------------------------------
| | Income taxes paid | -342 | -71 | -353 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | -1 065 | -593 | -572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| | Investments in tangible and | -301 | -18 | -36 |
| | intangible assets | | | |
--------------------------------------------------------------------------------
| | Acquisition of subsidiaries net | | -1 949 | -1 949 |
| | cash acquired | | | |
--------------------------------------------------------------------------------
| | Investments in associates | -48 | | -23 |
--------------------------------------------------------------------------------
| | Investments in other investments | -12 | | |
--------------------------------------------------------------------------------
| | Proceeds from disposal of | | 6 579 | 6 579 |
| | subsidiaries net cash disposed of | | | |
--------------------------------------------------------------------------------
| *) | Receivable for disposal of Artemis | | -10 043 | |
--------------------------------------------------------------------------------
| | Proceeds from other investments | 74 | | |
--------------------------------------------------------------------------------
| | Proceeds (-) and repayments (+) of | -62 | -265 | -118 |
| | loan receivables | | | |
--------------------------------------------------------------------------------
| | Dividends received | 2 | 2 | 2 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -347 | -5 694 | 4 455 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| | Proceeds from short-term loans | 931 | 504 | 579 |
--------------------------------------------------------------------------------
| | Repayments of short-term loans | -624 | -350 | -742 |
--------------------------------------------------------------------------------
| | Proceeds from long-term loans | | 1 619 | 1 619 |
--------------------------------------------------------------------------------
| | Repayments of long-term loans | -3 | -41 | -463 |
--------------------------------------------------------------------------------
| | Dividends paid | | -15 | -15 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | 304 | 1 717 | 978 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -1 108 | -4 570 | 4 861 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning | 12 022 | 7 293 | 7 293 |
| of the period | | | |
--------------------------------------------------------------------------------
| Foreign exchange rate adjustment | -18 | 14 | -132 |
--------------------------------------------------------------------------------
| Cash and cash equivalents of | | 213 | 213 |
| subsidiaries acquired | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents of | | -3 464 | -3 464 |
| subsidiaries divested | | | |
--------------------------------------------------------------------------------
| Effects on fair value implementation | 6 | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents for | | -1 319 | 8 112 |
| the continuing operations | | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -1 108 | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of the | 10 902 | 2 736 | 12 022 |
| period | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| *) Payment for the receivable received in July 2007. |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| (EUR thousand) | 30.6. 2007 | 30.6 2006 | 31.12. 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COLLARETAL FOR OWN COMMITENTS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by corporate | | | |
| mortgages | | | |
--------------------------------------------------------------------------------
| Loans from financing | 3 349 | 3 313 | 3 028 |
| institutions | | | |
--------------------------------------------------------------------------------
| Book value of shares of | 6 315 | 6 256 | 5 672 |
| Dovre International AS and | | | |
| Dovre Fabcon AS and current | | | |
| assets of Dovre Fabcon AS | | | |
| given as security | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by assets | | | |
--------------------------------------------------------------------------------
| Loans and checking | 251 | 378 | 0 |
| account credit lines | | | |
--------------------------------------------------------------------------------
| Book value of trade | 385 | 406 | 1 106 |
| receivables and fixed assets | | | |
| given as security | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by shares | | | |
--------------------------------------------------------------------------------
| Loans and checking | 12 | 36 | 24 |
| account credit lines | | | |
--------------------------------------------------------------------------------
| Book value of pledged shares | 511 | 511 | 511 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Future minimum lease payments | | | |
| under non-cancellable operating | | | |
| leases | | | |
--------------------------------------------------------------------------------
| Not later than one year | 284 | 252 | 328 |
--------------------------------------------------------------------------------
| Later than one year and not | 1 180 | 1 009 | 1 204 |
| later than five years | | | |
--------------------------------------------------------------------------------
| Total | 1 464 | 1 262 | 1 533 |
--------------------------------------------------------------------------------
INCOME STATEMENT QUARTERLY
CONTINUING OPERATIONS
--------------------------------------------------------------------------------
| (EUR thousand) | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 2006 | 10-12 |
| | 2007 | 2006 | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 11 041 | 7 464 | 11 821 | 10 316 | 11 058 | 12 183 |
--------------------------------------------------------------------------------
| Other | 24 | 143 | 8 | 34 | 46 | 169 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | 0 | 0 | 0 | -472 | 0 | 0 |
| disposal of | | | | | | |
| discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -28 | -3 | -12 | -123 | 76 | -35 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -10 077 | -6 699 | -11 043 | -9 825 | -10 159 | -11 204 |
| benefits | | | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -89 | -86 | -99 | -92 | -101 | -94 |
| and | | | | | | |
| amortisation | | | | | | |
--------------------------------------------------------------------------------
| Other | -791 | -748 | -1 085 | -753 | -621 | -797 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 80 | 70 | -410 | -915 | 299 | 222 |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| % | 0,7 % | 0,9 % | -3,5 % | -8,9 % | 2,7 % | 1,8 % |
--------------------------------------------------------------------------------
| Financing | 44 | 7 | 200 | 7 | 56 | 151 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | -91 | -63 | -159 | -62 | -69 | -345 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of | 5 | | -57 | | | -2 |
| result in | | | | | | |
| associates | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | 37 | 15 | -426 | -970 | 286 | 26 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % | 0,3 % | 0,2 % | -3,6 % | -9,4 % | 2,6 % | 0,2 % |
--------------------------------------------------------------------------------
| Tax on income | -121 | -156 | -58 | -103 | -173 | -23 |
| from | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | -85 | -141 | -484 | -1 073 | 113 | 2 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| % | -0,8 % | -1,9 % | -4,1 % | -10,4 % | 1,0 % | 0,0 % |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
--------------------------------------------------------------------------------
| (EUR thousand) | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 2006 | 10-12 |
| | 2007 | 2006 | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | | 8 837 | | 8 357 | | |
--------------------------------------------------------------------------------
| Other | | 37 | | 79 | | |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | | | | | |
| disposal of | | | | | | |
| discontinued | | | | | | |
--------------------------------------------------------------------------------
| operations | | 0 | | 15 006 | | |
--------------------------------------------------------------------------------
| Materials and | | -961 | | -784 | | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | | -6 330 | | -5 880 | | |
| benefits | | | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | | 0 | | 0 | | |
| and | | | | | | |
| amortisation | | | | | | |
--------------------------------------------------------------------------------
| Other | | -3 263 | | -3 139 | | |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | | -1 679 | | 13 640 | | |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| % | | -19,0 % | | 163,2 % | | |
--------------------------------------------------------------------------------
| Financing | | 295 | | 709 | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | | -309 | | -60 | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | | -1 694 | | 14 289 | | |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % | | -19,2 % | | 171,0 % | | |
--------------------------------------------------------------------------------
| Tax on income | | -252 | | -237 | | |
| from | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | | -1 946 | | 14 052 | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| % | | -22,0 % | | 168,1 % | | |
--------------------------------------------------------------------------------
GROUP TOTAL
--------------------------------------------------------------------------------
| (EUR thousand) | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 2006 | 10-12 |
| | 2007 | 2006 | 2007 | 2006 | | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 11 041 | 16 301 | 11 821 | 18 673 | 11 058 | 12 183 |
--------------------------------------------------------------------------------
| Other | 24 | 180 | 8 | 113 | 46 | 169 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | 0 | 0 | 0 | 14 534 | 0 | 0 |
| disposal of | | | | | | |
| discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -28 | -964 | -12 | -907 | 76 | -35 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -10 077 | -13 029 | -11 043 | -15 705 | -10 159 | -11 204 |
| benefits | | | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -89 | -86 | -99 | -92 | -101 | -94 |
| and | | | | | | |
| amortisation | | | | | | |
--------------------------------------------------------------------------------
| Other | -791 | -4 011 | -1 085 | -3 892 | -621 | -797 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 80 | -1 610 | -410 | 12 725 | 299 | 222 |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| % | 0,7 % | -9,9 % | -3,5 % | 68,1 % | 2,7 % | 1,8 % |
--------------------------------------------------------------------------------
| Financing | 44 | 302 | 200 | 716 | 56 | 151 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | -91 | -372 | -159 | -122 | -69 | -345 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of | 5 | | -57 | | | -2 |
| result in | | | | | | |
| associates | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | 37 | -1 679 | -426 | 13 319 | 286 | 26 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % | 0,3 % | -10,3 % | -3,6 % | 71,3 % | 2,6 % | 0,2 % |
--------------------------------------------------------------------------------
| Tax on income | -121 | -408 | -58 | -340 | -173 | -23 |
| from | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | -85 | -2 087 | -484 | 12 979 | 113 | 2 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| % | -0,8 % | -12,8 % | -4,1 % | 69,5 % | 1,0 % | 0,0 % |
--------------------------------------------------------------------------------
GROUP KEY RATIOS
--------------------------------------------------------------------------------
| (EUR million) | 4-6 | 4-6 | 1-6 | 1-6 2006 | 1-12 2006 |
| | 2007 | 2006 | 2007 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, Group | 11,8 | 18,7 | 22,9 | 35,0 | 58,2 |
--------------------------------------------------------------------------------
| Net sales, | 11,8 | 10,3 | 22,9 | 17,8 | 41,0 |
| continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Net sales, | 0,0 | 8,4 | 0,0 | 17,2 | 17,2 |
| discontinued | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Operating result, | -0,4 | 12,7 | -0,3 | 11,1 | 11,6 |
| Group | | | | | |
--------------------------------------------------------------------------------
| % of Net sales | -3,5 % | 68,1 % | -1,4 % | 31,8 % | 20,0 % |
--------------------------------------------------------------------------------
| Operating result, | -0,4 | -0,9 | -0,3 | -0,8 | -0,3 |
| continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 0,0 | 13,6 | 0,0 | 12,0 | 12,0 |
| discontinued | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Result before | -0,4 | 13,3 | -0,4 | 11,6 | 12,0 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| % of Net sales | -3,6 % | 71,3 % | -1,7 % | 33,3 % | 20,5 % |
--------------------------------------------------------------------------------
| Result for the | -0,5 | 13,0 | -0,6 | 10,9 | 11,0 |
| period | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -4,1 % | 69,3 % | -2,5 % | 31,0 % | 18,8 % |
--------------------------------------------------------------------------------
| Return on equity, | -12,8 % | 575,1 % | -7,5 % | 218,8 % | 111,2 % |
| % | | | | | |
--------------------------------------------------------------------------------
| Return on | -4,9 % | 317,1 % | -1,3 % | 133,8 % | 72,8 % |
| investment% | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 6,6 | 7,0 | 6,6 | 7,0 | 6,2 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 10,9 | 2,7 | 10,9 | 2,7 | 12,0 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| Debt to equity | -28,6 % | 27,4 % | -28,6 % | 27,4 % | -38,2 % |
| ratio, % | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 46,1 % | 49,2 % | 46,1 % | 49,2 % | 47,3 % |
--------------------------------------------------------------------------------
| Balance sheet | 33,0 | 31,6 | 33,0 | 31,6 | 32,7 |
| total | | | | | |
--------------------------------------------------------------------------------
| Gross Investments | 0,1 | 2,0 | 0,3 | 2,1 | 2,2 |
--------------------------------------------------------------------------------
| % of Net sales | 1,0 % | 11,0 % | 1,4 % | 6,0 % | 3,8 % |
--------------------------------------------------------------------------------
| R & D expenses | 0,4 | 1,6 | 0,8 | 3,4 | 4,0 |
--------------------------------------------------------------------------------
| % of Net sales | 3,4 % | 8,5 % | 3,6 % | 9,7 % | 6,8 % |
--------------------------------------------------------------------------------
| Personnel average | 322 | 571 | 322 | 549 | 469 |
| for the period | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 323 | 312 | 323 | 312 | 325 |
| end of the period | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings | -0,008 | 0,211 | -0,009 | 0,177 | 0,179 |
| per share,EUR | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings | -0,008 | 0,211 | -0,009 | 0,177 | 0,179 |
| per share, EUR | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | 0,24 | 0,25 | 0,24 | 0,25 | 0,25 |
| EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
| share | 2007 | 2006 | 2007 | 2006 | 2006 |
| number | | | | | |
--------------------------------------------------------------------------------
| Undiluted | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 |
--------------------------------------------------------------------------------
| Diluted | 61 221 588 | 61 263 623 | 61 220 129 | 61 255 219 | 61 236 944 |
--------------------------------------------------------------------------------
| Number of | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 |
| shares at | | | | | |
| the end | | | | | |
| of the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS ON JUNE 29, 2007
--------------------------------------------------------------------------------
| Shareholder | Number of | Percentage of all |
| | shares | shares and |
| | | voting rights |
--------------------------------------------------------------------------------
| Dovregruppen A.S.*) | 6 560 646 | 10.7 |
--------------------------------------------------------------------------------
| Etra-Invest Oy | 6 211 500 | 10.1 |
--------------------------------------------------------------------------------
| Pekka Mäkelä | 2 882 375 | 4.7 |
--------------------------------------------------------------------------------
| Pekka Pere**) | 2 381 105 | 3.9 |
--------------------------------------------------------------------------------
| Etola Erkki | 2 000 000 | 3.3 |
--------------------------------------------------------------------------------
| Eficor Oyj**) | 1 860 000 | 3.0 |
--------------------------------------------------------------------------------
| Lars Nyqvist | 1 260 555 | 2.1 |
--------------------------------------------------------------------------------
| Thominvest Oy | 1 043 500 | 1.7 |
--------------------------------------------------------------------------------
| Lapuan Osuuspankki | 900 000 | 1.5 |
--------------------------------------------------------------------------------
| Eero Ruokostenpohja | 703 950 | 1.1 |
--------------------------------------------------------------------------------
| Reino Jokinen | 530 000 | 0.9 |
--------------------------------------------------------------------------------
| Hinkka Invest Oy | 509 790 | 0.8 |
--------------------------------------------------------------------------------
| Astea AS | 471 257 | 0.8 |
--------------------------------------------------------------------------------
| Kefura AB | 450 000 | 0.7 |
--------------------------------------------------------------------------------
| Risto Saikko | 443 090 | 0.7 |
--------------------------------------------------------------------------------
| Nordea Pankki Suomi Oyj (nominee | 425 947 | 0.7 |
| registered) | | |
--------------------------------------------------------------------------------
| Petri Hinkka | 400 000 | 0.6 |
--------------------------------------------------------------------------------
| Jari Jyväsjärvi | 400 000 | 0.6 |
--------------------------------------------------------------------------------
| Vesa Olsson | 400 000 | 0.6 |
--------------------------------------------------------------------------------
| Markku Mäkinen | 276 142 | 0.6 |
--------------------------------------------------------------------------------
*) Birger Flaa holds control over Dovregruppen A.S.
**) Pekka Pere holds control over Eficor Oy
