Consolidated net sales grew 26.1% over the previous year, totalling EUR 288.6 million (228.9 million). Operating profit was EUR 28.2 million (24.2 million) and profit before taxes was EUR 25.6 million (22.8 million). Diluted earnings per share were EUR 0.98 (0.87). A dividend of EUR 0.45 per share will be proposed. MIKA KARI, PRESIDENT AND CEO: “Demand in our customer sectors remained strong until the end of the year and we achieved substantial growth in both of our business areas. Our wiring harnesses manufacturing capacity was expanded in Pskov, Russia and in China. The integration of the North American business operations required more procedures than expected, which burdened the profitability of the Wiring Harnesses business. The integration will be completed during the current year. In the Electronics business, we increased design resources and were able to boost the share of contract design during the year. The introduction of electronics manufacturing at the unit in China proceeded as planned. The higher degree of uncertainty in the global economy has not been reflected in our key customers' forecasts for 2008. Based on customer forecasts, we expect to see growth in our net sales and to achieve a good operational result. The competitive situation will remain tough as consolidation in our customer sectors and our competition continues. We will increase our investments in developing market areas which, we believe, will enable us to achieve considerable growth in the future.” OPERATING ENVIRONMENT AND DELIVERIES The Group's wiring harnesses deliveries grew substantially in Europe and South America compared with the previous year, thanks to growth in the commercial vehicles market. The deliveries of wiring harnesses for other vehicles enjoyed a favourable trend. The volume of deliveries in North America was somewhat smaller than expected. The sales of wiring harnesses and cabling to the telecommunications and automation industries remained at the previous year's level but took place largely in the latter part of the year, with final-quarter sales being substantially higher than in the previous year. The growth of electronics contract design and manufacturing exceeded earlier expectations. Investments made by the company's telecommunications customers led to an increase in the volume of design services and demand from the industrial electronics sector also remained strong. Aiming to improve our competitive position, we increased our resources in product development and design, enhanced our production technology and stepped up our production capacity. The share of contract design in our Electronics business grew. Thanks to our strong product development expertise, we were able to offer a more comprehensive design services package in addition to our cost-efficient materials and manufacturing services. In line with our growth strategy, we launched electronics manufacturing operations in Suzhou, China. The facility in China will play a crucial role in the future as a unit manufacturing volume products, for in addition to serving our existing customers, we are also seeking new customer relationships in the Asian markets. In Asia, we began global materials and components sourcing operations which we expect will boost our competitiveness in the future. NET SALES AND FINANCIAL PERFORMANCE October-December 2007 Consolidated net sales in October-December amounted to EUR 78.1 million (65.6 million), up 19.0% on the same period a year earlier. Consolidated operating profit totalled EUR 6.8 million (3.9 million), accounting for 8.7% of net sales (6.0%). Depreciations amounted to EUR 2.0 million (1.8 million). Financial income and expenses were EUR 1.2 million negative (0.9 million negative). Profit before taxes was EUR 5.6 million (3.0 million). Profit for the report period was EUR 3.3 million (2.1 million). Diluted earnings per share were EUR 0.19 (0.11). Net sales generated in the report period by the Wiring Harnesses business amounted to EUR 62.0 million (53.6 million), or 15.5% more than in the comparative period. The segment's share of consolidated net sales was 79.4% (81.8%). It generated an operating profit of EUR 4.6 million (2.8 million), equivalent to 7.4% of the segment's net sales (5.2%). Net sales generated by the Electronics business grew 34.9% to EUR 16.1 million (11.9 million). The segment's share of consolidated net sales was 20.6% (18.2%). It generated an operating profit of EUR 2.2 million (1.1 million), equivalent to 13.6% of the segment's net sales (9.3%). January-December 2007 Consolidated net sales in the financial year totalled EUR 288.6 million (228.9 million), increasing by 26.1% on the previous year. Consolidated operating profit totalled EUR 28.2 million (24.2 million), accounting for 9.8% of net sales (10.6%). Depreciations amounted to EUR 7.6 million (6.3 million). Financial income and expenses were EUR 2.5 million negative (1.5 million negative). Profit before taxes was EUR 25.6 million (22.8 million). Profit for the financial year totalled EUR 17.6 million (15.7 million). Diluted earnings per share were EUR 0.98 (0.87). Net sales generated by the Wiring Harnesses business during the report year rose by 26.3% to EUR 230.0 million (182.0 million). The segment's share of consolidated net sales was 79.7% (79.5%). The Wiring Harnesses business reported an operating profit of EUR 18.7 million (17.9 million), or 8.2% of the segment's net sales (9.8%). The Electronics business segment saw its net sales increase by 25.0% to EUR 58.6 million (46.9 million), accounting for 20.3% of consolidated net sales (20.5%). The Electronics business posted an operating profit of EUR 9.4 million (6.4 million), or 16.1% of the segment's net sales (13.5%). Consolidated net sales enjoyed favourable growth in both business areas and profitability remained at a good level. The world market prices of raw materials maintained their high level. We used derivative instruments to hedge part of our future copper requirements. The earnings trend of the North American operations fell below expectations. The Electronics business's new production unit in China was completed according to timetable and it manufactured its first products in December. In Russia, the production volume of the Pskov factory was increased as planned, and production in the extension to the factory will be started early this year. BALANCE SHEET AND FINANCING Consolidated total assets at 31 December 2007 stood at EUR 175.9 million (151.0 million). Interest-bearing liabilities totalled EUR 55.7 million at the close of the report year (45.0 million). The Group's equity ratio was 47.2% (48.0%). Net liabilities totalled EUR 45.3 million (37.0 million) and gearing was 54.5% (50.9%). Inventories amounted to EUR 47.0 million (36.6 million). Current receivables totalled EUR 70.2 million (62.7 million). Cash flows after investing activities during the period in review were EUR 0.2 million (8.7 million negative). Cash in hand and at bank amounted to EUR 10.4 million (8.1 million). In order to ensure financing flexibility, PKC has available credit facilities. CAPITAL EXPENDITURES During the review period, the Group's gross capital expenditures totalled EUR 10.8 million (20.0 million), representing 3.7% of net sales (8.7%). Capital expenditures consisted mostly of the acquisition of production machinery and equipment. RESEARCH AND DEVELOPMENT Research and development expenditure totalled EUR 5.5 million (4.9 million), representing 1.9% (2.1%) of consolidated net sales. At the end of the report year, 90 (80) people were employed in product development. PERSONNEL During the review period, the Group had an average payroll of 4,971 employees (4,013). At the end of the financial year, the Group's personnel numbered 5,311 employees (4,779), of whom 4,576 (4,084) worked abroad and 735 (695) in Finland. QUALITY AND THE ENVIRONMENT The Group's European Wiring Harnesses business has been certified in compliance with the ISO/TS 16949, ISO 9001 and ISO 14001 standards. The Chinese factory as well as the factory in Pskov, Russia, have received ISO 14001 certificates and will be certified in accordance with ISO/TS 16949 and ISO 9001 standards during the first part of the current year. The North American wiring harnesses operations have been certified in accordance with ISO/TS 16949, and the objective is to obtain a certificate for an ISO 14001 environmental system at the Mexican factory in spring 2008. The Electronics business has been certified in accordance with the ISO 9001 and ISO 14001 standards in Europe and also the electronics unit in China will be certified in spring 2008. The improvement of the quality of operations is carried out in line with the Group's quality strategy and action plans based on it. In accordance with its environmental policy, PKC is committed to continuously minimising the environmental impacts of its operations. THE COMPANY'S BOARD OF DIRECTORS AND CORPORATE MANAGEMENT TEAM PKC Group Oyj's Board of Directors was composed of the following members: Harri Suutari (Chairman), Matti Eestilä, Jaakko Niemelä, Endel Palla, Olli Pohjanvirta (as from 29 March 2007), Matti Ruotsala, Risto Suonio (until 29 March 2007), and Jyrki Tähtinen. Mika Kari served as the company's President and CEO. The Group's Corporate Management Team is composed of Mika Kari, President and CEO; Mika Rytky, Vice President, Wiring Harnesses; Jarmo Rajala, Vice President, Electronics; and Sami Klemola, CFO. AUDITORS The authorised public accounting firm Ernst & Young Oy carried out PKC Group Oyj's audit, with Rauno Sipilä, Authorised Public Accountant, acting as the principal auditor. SHARES AND SHAREHOLDERS PKC Group Oyj's share turnover on the OMX Nordic Exchange Helsinki from 1 January to 31 December 2007 was 17,639,780 shares (11,402,932 shares), representing 99.2% of the average number of shares (64.2%). Shares were traded to a total value of EUR 185.1 million (154.7 million). The low during the report year was EUR 8.55 (10.02) and the high was EUR 12.40 (14.08). The closing price on the last trading day of the report period was EUR 8.70 (12.25) and the average price during the period was EUR 10.48 (11.69). The company's market capitalisation at 31 December 2007 was EUR 154.7 million (217.8 million). Shares held by Board members, their related persons and corporations in which they have a controlling interest accounted for 2.9% (3.5%) of the total number of shares at the end of the report year. PKC Group Oyj had 6,505 shareholders (5,998) at the end of the review period. The proportion of shares held by foreigners and by way of nominee registrations at 31 December 2007 was 28.1% of the shares outstanding (29.5%). THE BOARD'S AUTHORISATIONS The Board of Directors has been granted authorisation by the Annual General Meeting on 29 March 2007 to decide on one or more share issues and the granting of special rights as defined in Chapter 10, Section 1 of the Companies Act and on all the terms and conditions thereof. A maximum total of 3,500,000 shares may be issued or subscribed for on the basis of the authorisation. The authorisation includes the right to decide on a directed share issue. The authorisation shall be in force for five years from the date of the resolution of the Annual General Meeting. The authorisation may be used at the Board's discretion for financing corporate acquisitions, for carrying out inter-company co-operation or similar arrangements, or for strengthening the company's financing and capital structure. The Board of Directors does not have a valid authorisation to acquire the company's own shares, and the company does not have any own shares (treasury shares) in its possession. STOCK OPTION SCHEMES In 2006, PKC launched a stock option scheme according to which the maximum total number of stock options to be issued is 697,500, and they are divided into A, B and C warrants. At the end of the report period the company's key personnel had a total of 202,500 2006A warrants and 221,000 2006B warrants in their possession. The subscription period for shares through the exercise of stock options shall be during the years 2009-2013. The share subscription price for stock options shall be the volume-weighted average price of the PKC Group Oyj share on the OMX Nordic Exchange Helsinki, with dividend adjustments, as defined in the stock option terms (at present, EUR 11.09 for the 2006A and 2006B warrants). Through the exercise of the 2006 stock options, the share capital of PKC Group Oyj may be increased by a maximum total of 697,500 new shares and EUR 234,673.67. The stock options 2006 are subject to a share ownership plan. Key personnel are obliged to subscribe for or purchase the company's shares with 20% of the gross income earned from stock options and to own these shares for two years. The company's President and CEO is obliged to own these shares for the duration of his managerial contract. SHORT-TERM RISKS AND UNCERTAINTIES The PKC Group strives to manage and limit any adverse effects of risks encountered in its operations. The main risks are the market trend in the demand for the products of its main customers, price pressures imposed by customers and demands for tighter contractual terms, the availability of raw materials and components and changes in their world market prices, as well as the adequacy of production capacity in case demand rises rapidly. The principles, objectives and organisation of the company's risk management as well as key risk areas are described in the risk management section in the Corporate Governance guidelines, which are available on the company's website, www.pkcgroup.com. OUTLOOK FOR THE FUTURE The higher degree of uncertainty in the global economy has not been reflected in customers' orders or forecasts. Because of the continuing consolidation trend among customers, competitors and suppliers, and with overall demand potentially levelling off, the competitive situation is expected to continue to become tighter. In accordance with customer forecasts, we expect deliveries to the commercial vehicles industry to grow compared with the previous year. We will also be seeking growth on the growing Russian market in the future. The volume of wiring harnesses deliveries to the other vehicle industry and to customers in the telecommunications and automation industries is expected to increase with the start-up of new product ranges. Competition on the contract design and manufacturing market will remain stiff, calling for cost-efficiency and the capability to rapidly respond to customers' worldwide needs. By offering customers services that cover all stages of a product's life cycle, we will guarantee the continuation of close co-operation based on trust in the future. We expect the Electronics business to continue its growth and to maintain its profitability at a good level. Consolidated net sales are expected to grow on the previous year. The downward trend in sales prices will create pressures to develop operational efficiency. In addition, we estimate that high prices of raw materials and costs related to the increase of production capacity will cut our profitability, but operative profitability over the full year is forecast to remain at a good level. THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS The parent company's distributable funds are EUR 57,671,404 of which the net profit for the financial year amounts to EUR 14,213,049. The Board of Directors will propose to the Annual General Meeting that the distributable funds be disposed of as follows: - a dividend of EUR 0.45 per share is to be paid, totalling EUR 8,001,685 - a transfer be made to shareholders' equity in the amount of EUR 49,669,719 total EUR 57,671,404. The record date for the dividend payout is 1 April 2008. The payment date for dividends is 8 April 2008. The company's liquidity is good and, in the view of the Board of Directors, the proposed dividend payout will not put the company's liquidity at risk. ANNUAL GENERAL MEETING AND FINANCIAL REPORTS IN 2008 The Annual General Meeting of PKC Group Oyj will be held on Thursday 27 March 2008, at 4.00 p.m., at the parent company's offices in Kempele, at the address Vihikari 10. The Annual Report will be published in week 11, 2008. In 2008, the Interim Reports will be published as follows: Interim Report 1-3/2008 on Friday 18 April 2008 at 8.15 a.m. Interim Report 1-6/2008 on Tuesday 15 July 2008 at 8.15 a.m. Interim Report 1-9/2008 on Tuesday 21 October 2008 at 8.15 a.m. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | 10-12/ | 10-12/0 | 1-12/07 | 1-12/06 | | (1,000 EUR) | 07 3 | 6 3 | 12 mon. | 12 mon. | | | mon. | mon. | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 78,084 | 65,594 | 288,649 | 228,928 | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in | 2,169 | 1,588 | 4,668 | -339 | | stocks of finished goods and work | | | | | | in progress | | | | | -------------------------------------------------------------------------------- | Other operating income | 409 | 219 | 1,009 | 1,136 | -------------------------------------------------------------------------------- | Raw materials and services | 44,162 | 38,568 | 162,665 | 122,549 | -------------------------------------------------------------------------------- | Staff expenses | 19,821 | 14,944 | 66,824 | 51,898 | -------------------------------------------------------------------------------- | Depreciation | 2,022 | 1,770 | 7,644 | 6,310 | -------------------------------------------------------------------------------- | Other operating expenses | 7,858 | 8,207 | 29,022 | 24,719 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 6,799 | 3,912 | 28,171 | 24,249 | -------------------------------------------------------------------------------- | Interest and financial income and | -593 | -446 | -2,310 | -1,117 | | expenses | | | | | -------------------------------------------------------------------------------- | Other financial income and | -576 | -463 | -219 | -381 | | expenses | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | 5,630 | 3,003 | 25,642 | 22,751 | -------------------------------------------------------------------------------- | Income taxes | -2,285 | -948 | -8,063 | -7,044 | -------------------------------------------------------------------------------- | PROFIT FOR THE REPORT PERIOD | 3,345 | 2,055 | 17,579 | 15,708 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Shareholders of the parent | 3,298 | 2,036 | 17,374 | 15,552 | | company | | | | | -------------------------------------------------------------------------------- | Minority intrest | -47 | -19 | -205 | -155 | -------------------------------------------------------------------------------- | Total | 3,345 | 2,055 | 17,579 | 15,708 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | From profit attributable to | | | | | | shareholders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Basic earnings per share (EPS), | 0.19 | 0.11 | 0.98 | 0.88 | | EUR | | | | | -------------------------------------------------------------------------------- | Diluted earning per share (EPS), | 0.19 | 0.11 | 0.98 | 0.87 | | EUR | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (1,000 EUR) | 12/07 | 12/06 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | -------------------------------------------------------------------------------- | Goodwill | 6,214 | 5,723 | -------------------------------------------------------------------------------- | Other intangible assets | 3,534 | 3,330 | -------------------------------------------------------------------------------- | Tangible assets | 34,454 | 31,468 | -------------------------------------------------------------------------------- | Available-for-sale investments | 15 | 15 | -------------------------------------------------------------------------------- | Deffered tax assets | 3,804 | 2,486 | -------------------------------------------------------------------------------- | Other receivables | 372 | 625 | -------------------------------------------------------------------------------- | Non-current assets total | 48,393 | 43,647 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CURRENT ASSSETS | | | -------------------------------------------------------------------------------- | Inventories | 46,954 | 36,589 | -------------------------------------------------------------------------------- | Receivables | | | -------------------------------------------------------------------------------- | Trade receivables | 61,176 | 55,557 | -------------------------------------------------------------------------------- | Other receivables | 9,001 | 7,163 | -------------------------------------------------------------------------------- | Receivables total | 70,176 | 62,720 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 10,426 | 8,060 | -------------------------------------------------------------------------------- | Current assets total | 127,556 | 107,369 | -------------------------------------------------------------------------------- | ASSETS TOTAL | 175,949 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital | 5,983 | 5,983 | -------------------------------------------------------------------------------- | Share premium account | 4,862 | 4,862 | -------------------------------------------------------------------------------- | Reserve fund | 239 | 166 | -------------------------------------------------------------------------------- | Translation difference | 5 | -403 | -------------------------------------------------------------------------------- | Share-based payment | 759 | 222 | -------------------------------------------------------------------------------- | Retained earnings | 52,970 | 45,516 | -------------------------------------------------------------------------------- | Profit for the reporting period | 17,374 | 15,552 | -------------------------------------------------------------------------------- | Minority interest | 789 | 646 | -------------------------------------------------------------------------------- | EQUITY TOTAL | 82,980 | 72,544 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 21,078 | 18,947 | -------------------------------------------------------------------------------- | Non-interest-bearing liabilities | 0 | 112 | -------------------------------------------------------------------------------- | Provisions | 114 | 223 | -------------------------------------------------------------------------------- | Deffered tax liabilities | 560 | 658 | -------------------------------------------------------------------------------- | Non-current liabilities total | 21,752 | 19,941 | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 34,606 | 26,068 | -------------------------------------------------------------------------------- | Trade payables | 21,173 | 18,394 | -------------------------------------------------------------------------------- | Other liabilities | 15,438 | 14,068 | -------------------------------------------------------------------------------- | Current liabilities total | 71,217 | 58,531 | -------------------------------------------------------------------------------- | Liabilities total | 92,855 | 78,249 | -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES TOTAL | 175,949 | 151,016 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT (1,000 | 1-12/07 12 | 1-12/06 12 | | EUR) | mon. | mon. | -------------------------------------------------------------------------------- | Cash flow from operating activities | | | -------------------------------------------------------------------------------- | Cash receipts from customers | 282,362 | 217,714 | -------------------------------------------------------------------------------- | Cash receipts from other operating | 974 | 1,070 | | activities | | | -------------------------------------------------------------------------------- | Cash paid to suppliers and employees | -258,253 | -199,711 | -------------------------------------------------------------------------------- | Cash flow from operations before financial | 25,082 | 19,074 | | income and expenses and taxes | | | -------------------------------------------------------------------------------- | Interest paid | -2,745 | -2,413 | -------------------------------------------------------------------------------- | Interest received and other financial income | 817 | 2,086 | -------------------------------------------------------------------------------- | Income taxes paid | -10,497 | -8,766 | -------------------------------------------------------------------------------- | Net cash from operating activities (A) | 12,658 | 9,980 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investig activities | | | -------------------------------------------------------------------------------- | Purchase of tangible and intangible assets | -11,143 | -9,237 | -------------------------------------------------------------------------------- | Proceed from sale of tangible and intangible | 108 | 534 | | assets | | | -------------------------------------------------------------------------------- | Investments | -1,380 | -9,985 | -------------------------------------------------------------------------------- | Loans granted | -11 | -12 | -------------------------------------------------------------------------------- | Amortisations of loan received | 9 | 14 | -------------------------------------------------------------------------------- | Dividens received | 1 | 1 | -------------------------------------------------------------------------------- | Net cash flow from investing activities (B) | -12,416 | -18,685 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from financing activities | | | -------------------------------------------------------------------------------- | Share isssues | 0 | 441 | -------------------------------------------------------------------------------- | Drawing of credits | 18,843 | 25,393 | -------------------------------------------------------------------------------- | Amortasations of credits | -8,642 | -5,891 | -------------------------------------------------------------------------------- | Dividends paid | -8,077 | -8,068 | -------------------------------------------------------------------------------- | Net cash used in financing activities (C) | 2,123 | 11,876 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net increase (+) or decrease (-) in cash and | 2,365 | 3,003 | | equivalents | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY FINANCIAL INDICATORS | 1-12/07 12 | 1-12/06 12 | | | mon. | mon. | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 288,649 | 228,928 | -------------------------------------------------------------------------------- | Operating profit, 1000 EUR | 28,171 | 24,249 | -------------------------------------------------------------------------------- | % of net sales | 9.8 | 10.6 | -------------------------------------------------------------------------------- | Profit before taxes, 1000 EUR | 25,642 | 22,751 | -------------------------------------------------------------------------------- | % of net sales | 8.9 | 9.9 | -------------------------------------------------------------------------------- | Net profit for the period, 1000 EUR | 17,374 | 15,552 | -------------------------------------------------------------------------------- | % of net sales | 6.0 | 6.8 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 22.6 | 22.8 | -------------------------------------------------------------------------------- | Return on investments (ROI), % | 23.4 | 24.1 | -------------------------------------------------------------------------------- | Net liabilities, 1000 EUR | 45,258 | 36,955 | -------------------------------------------------------------------------------- | Gearing, % | 54.5 | 50.9 | -------------------------------------------------------------------------------- | Equity ratio, % | 47.2 | 48.0 | -------------------------------------------------------------------------------- | Current ratio | 1.8 | 1.8 | -------------------------------------------------------------------------------- | Gross capital expenditure, 1000 EUR | 10,791 | 20,012 | -------------------------------------------------------------------------------- | % of net sales | 3.7 | 8.7 | -------------------------------------------------------------------------------- | R&D expenditures, 1000 EUR | 5,511 | 4,906 | -------------------------------------------------------------------------------- | % of net sales | 1.9 | 2.1 | -------------------------------------------------------------------------------- | Personnel average | 4,971 | 4,013 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP PER-SHARE KEY FIGURES | 1-12/07 12 | 1-12/06 12 | | | mon. | mon. | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | 0.98 | 0.88 | -------------------------------------------------------------------------------- | Earnings per share (EPS),diluted, EUR | 0.98 | 0.87 | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.62 | 4.04 | -------------------------------------------------------------------------------- | Share price at close of period, EUR | 8.70 | 12.25 | -------------------------------------------------------------------------------- | Lowest share price, EUR | 8.55 | 10.02 | -------------------------------------------------------------------------------- | Highest share price, EUR | 12.40 | 14.08 | -------------------------------------------------------------------------------- | Average share price, EUR | 10.48 | 11.69 | -------------------------------------------------------------------------------- | Turnover in shares, 1000 shares | 17,640 | 11,403 | -------------------------------------------------------------------------------- | Turnover in shares per (share issue | 99.2 | 64.2 | | adjusted) share capital, % | | | -------------------------------------------------------------------------------- | Average number of shares, 1000 shares | 17,782 | 17,756 | -------------------------------------------------------------------------------- | Average number of shares, diluted, 1000 | 17,782 | 17,774 | | shares | | | -------------------------------------------------------------------------------- | Shares at end of period, 1000 shares | 17,782 | 17,782 | -------------------------------------------------------------------------------- | Market capitalisation , 1000 EUR | 154,699 | 217,824 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1. SEGMENT INFORMATION | 10-12/0 | 10-12/0 | 1-12/07 | 1-12/06 | | | 7 3 | 6 3 | 12 mon. | 12 mon. | | | mon. | mon. | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY BUSINESS SEGMENTS | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | 62,014 | 53,564 | 230,183 | 182,163 | -------------------------------------------------------------------------------- | Net sales to other segments, 1000 | -48 | 21 | -170 | -157 | | EUR | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, total, 1000 EUR | 61,966 | 53,647 | 230,013 | 182,006 | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | 79.4 | 81.8 | 79.7 | 79.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 16,303 | 12,067 | 59,471 | 48,034 | -------------------------------------------------------------------------------- | Net sales to other segments, 1000 | -185 | -121 | -835 | -1,112 | | EUR | | | | | -------------------------------------------------------------------------------- | Electronics, total, 1000 EUR | 16,118 | 11,946 | 58,636 | 46,922 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 20.6 | 18.2 | 20.3 | 20.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group Total | 78,084 | 65,594 | 288,649 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING PROFIT BY BUSINESS | | | | | | SEGMENTS | | | | | -------------------------------------------------------------------------------- | Wiring Harnesses, 1000 EUR | 4,609 | 2,792 | 18,746 | 17,899 | -------------------------------------------------------------------------------- | Wiring Harnesses, % of net sales | 7.4 | 5.2 | 8.2 | 9.8 | -------------------------------------------------------------------------------- | Electronics, 1000 EUR | 2,190 | 1,120 | 9,424 | 6,350 | -------------------------------------------------------------------------------- | Electronics, % of net sales | 13.6 | 9.3 | 16.1 | 13.5 | -------------------------------------------------------------------------------- | Group Total | 6,799 | 3,912 | 28,171 | 24,249 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES BY GEOGRAPHICAL | | | | | | SEGMENTS (1000 EUR) | | | | | -------------------------------------------------------------------------------- | Finland | 13,812 | 11,851 | 54,411 | 47,824 | -------------------------------------------------------------------------------- | Other Europe | 42,868 | 37,280 | 153,727 | 128,484 | -------------------------------------------------------------------------------- | North America | 7,031 | 7,606 | 30,692 | 16,534 | -------------------------------------------------------------------------------- | South America | 9,502 | 7,091 | 36,145 | 29,149 | -------------------------------------------------------------------------------- | Other Countries | 4,871 | 1,765 | 13,673 | 6,937 | -------------------------------------------------------------------------------- | Total | 78,084 | 65,594 | 288,649 | 228,928 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2. RECONCILIATION OF EQUITY (MILLION EUR) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A = Share Capital | -------------------------------------------------------------------------------- | B = Share premium account | -------------------------------------------------------------------------------- | C = Fair value and other reserves | -------------------------------------------------------------------------------- | D = Retained earnings | -------------------------------------------------------------------------------- | E = Minority interest | -------------------------------------------------------------------------------- | F = Total equity | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | A | B | C | D | E | F | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.5 | 0.3 | 53.8 | 0.6 | 65.0 | | 1.1.2006 | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 0 | 0 | 0 | 15.6 | 0.1 | 15.7 | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | -0.1 | -8.1 | -------------------------------------------------------------------------------- | Share options used | 0 | 0.4 | 0 | 0 | 0 | 0.4 | -------------------------------------------------------------------------------- | Share based payments | 0 | 0 | 0 | 0.2 | 0 | 0.2 | | Translation | 0 | 0 | 0 | -0,8 | 0 | -0,8 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | -0.1 | 0 | 0 | 0.0 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | | 31.12.2006 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 60.9 | 0.6 | 72.5 | | 1.1.2007 | | | | | | | -------------------------------------------------------------------------------- | Profit for the | 0 | 0 | 0 | 17.4 | 0.2 | 17.6 | | period | | | | | | | -------------------------------------------------------------------------------- | Dividends | 0 | 0 | 0 | -8.0 | 0 | -8.0 | -------------------------------------------------------------------------------- | Share-based payments | 0 | 0 | 0 | 0.5 | 0 | 0.5 | -------------------------------------------------------------------------------- | Translation | 0 | 0 | 0 | 0.4 | 0 | 0.4 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other changes | 0 | 0 | 0.1 | -0.1 | 0 | 0 | -------------------------------------------------------------------------------- | Shareholders' equity | 6.0 | 4.9 | 0.2 | 71.1 | 0.8 | 83.0 | | 31.12.2007 | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. GROUP CONTINGENT LIABILITIES | 12/07 | 12/06 | | | | AT END OF PERIOD | 5,668 | 6,911 | | | | Leasing liabilities | | | | | | Liabilities for derivate | | | | | | instruments | | | | | -------------------------------------------------------------------------------- | Nominal values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | 5,740 | 5,917 | | | -------------------------------------------------------------------------------- | Raw material derivates | | | | | -------------------------------------------------------------------------------- | Futures contracts | 1,598 | 0 | | | -------------------------------------------------------------------------------- | Total | 7,338 | 5,917 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values | | | | | -------------------------------------------------------------------------------- | Currency derivates | | | | | -------------------------------------------------------------------------------- | Forward contracts | -105 | -38 | | | -------------------------------------------------------------------------------- | Raw material derivates | | | | | -------------------------------------------------------------------------------- | Futures contracts | -144 | 0 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | -249 | -38 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Derivates are used in hedging currency and changing copper prices. PKC Group does not apply hedge accounting to derivate instruments in accordance with IAS 39. Fair values of the derivates are entered directly in the income statement. -------------------------------------------------------------------------------- | 4. QUARTERLY KEY | 7-9/06 | 10-12/ | 1-3/07 | 4-6/07 | 6-9/07 | 10-12/0 | | FIGURES, | 3 mon. | 06 3 | 3 mon. | 3 mon. | 3 mon. | 7 3 | | CONSOLIDATED | | mon. | | | | mon. | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 53.99 | 65.59 | 69.97 | 73.67 | 66.93 | 78.08 | -------------------------------------------------------------------------------- | Operating profit, | 5.32 | 3.91 | 6.47 | 7.34 | 7.56 | 6.8 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 9.8 | 6.0 | 9.3 | 10.0 | 11.3 | 8.7 | -------------------------------------------------------------------------------- | Profit before taxes, | 5.17 | 3.00 | 6.09 | 7.14 | 6.77 | 5.63 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 9.6 | 4.6 | 8.7 | 9.7 | 10.1 | 7.2 | -------------------------------------------------------------------------------- | Equity ratio, % | 49.1 | 48.0 | 44.2 | 45.9 | 47.0 | 47.2 | -------------------------------------------------------------------------------- | Earnings per share | 0.21 | 0.11 | 0.24 | 0.30 | 0.25 | 0.19 | | (EPS), diluted (EUR) | | | | | | | -------------------------------------------------------------------------------- | Shareholders equity | 3.94 | 4.04 | 3.84 | 4.18 | 4.43 | 4.62 | | per share, EUR | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, WIRING | | | | | | | | HARNESSESS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 42.16 | 53.65 | 58.12 | 59.77 | 50.16 | 61.97 | -------------------------------------------------------------------------------- | Operating profit, | 3.54 | 2.79 | 4.94 | 5.57 | 3.31 | 4.61 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 8.4 | 5.2 | 8.5 | 9.3 | 6.6 | 7.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | QUARTERLY KEY | | | | | | | | FIGURES, ELECTRONICS | | | | | | | -------------------------------------------------------------------------------- | Net sales, 1000 EUR | 11.83 | 11.95 | 11.85 | 13.91 | 16.77 | 16.12 | -------------------------------------------------------------------------------- | Operating profit, | 1.77 | 1.12 | 1.53 | 1.77 | 4.25 | 2.19 | | 1000 EUR | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 15.0 | 9.3 | 12.9 | 12.8 | 25.3 | 13.6 | -------------------------------------------------------------------------------- CALCULATION OF INDICATORS Return on equity (ROE), % = 100 x (Profit before extraordinary items - taxes) / Shareholders' equity + minority interest (average) Return on investments (ROI), % = 100 x (Profit before extraordinary items - interest and other financial expenses) / Balance sheet total - non-interest-bearing liabilities (average) Gearing, % = 100 x (Interest-bearing liabilities - cash in hand and at bank and investments) / Shareholders' equity + minority interest Equity ratio, % = 100 x (Shareholders' equity + minority interest) / Balance sheet total - advance payments received Quick ratio = Receivables and cash in hand and at bank / Current liabilities - advance payments received Current ratio Receivables and cash in hand and at bank + inventories / Current liabilities Earnings per share (EPS), EUR Profit before extraordinary items - income taxes +/- minority interest / Average share issue-adjusted number of shares Shareholders' equity per share, EUR Shareholders' equity / Share issue-adjusted number of shares on the balance sheet date Market capitalisation Number of shares at the end of the financial period x the last trading price of the financial period The presented figures are based on the audited financial statements. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). All future estimates and forecasts presented in this stock exchange release are based on the best current knowledge of the company's management. The estimates and forecasts contain certain elements of risk and uncertainty which, if they materialise, may lead to results that differ from present estimates. The main factors of uncertainty are related, among other things, to the general economic situation, the trend in the operating environment and the sector as well as the success of the Group's strategy. PKC GROUP OYJ Board of Directors Mika Kari President and CEO For additional information, contact: Mika Kari, President & CEO, PKC Group Oyj, +358 20 1752 350 Sami Klemola, CFO, PKC Group Oyj, +358 20 1752 362 PRESS CONFERENCE A press conference on the financial statements will be arranged for analysts and investors today, 8 February 2008, at 1.00 pm, at the address World Trade Center, Cabinet 4, 2nd floor, Aleksanterinkatu 17, Helsinki. DISTRIBUTION OMX Nordic Exchange Helsinki Main media www.pkcgroup.com The PKC Group offers design and contract manufacturing services for wiring harnesses, cabling and electronics. The Group has production facilities in Finland, Brazil, China, Mexico, Estonia and Russia, and employs over 5,100 people. The Group's net sales in 2007 totalled EUR 288.6 million. PKC Group Oyj is listed on the OMX Nordic Exchange Helsinki.