PONSSE PLC STOCK EXCHANGE RELEASE 21 APRIL 2009 AT 9:00 A.M.
PONSSE'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2009
- Net sales amounted to EUR 37.5 (75.8) million.
- Operating result was EUR -8.7 (9.1) million, equalling -23.1 (12.0) per cent
of net sales.
- Result before taxes was EUR -9.0 (8.1) million.
- Earnings per share were EUR -0.34 (0.21).
- Equity ratio was 47.5 (50.9) per cent.
- Order books stood at EUR 32.9 (100.5) million.
PRESIDENT AND CEO JUHO NUMMELA:
Problems in the real economy persisted during the first quarter. The demand for
forest machines was exceptionally weak all over the world. We went into 2009
with lean order books, and as the order intake was weak during the period the
order books became even more meagre.
The number of manufactured new machines fell by 74% from the comparable period.
The net sales of the Group decreased by 50% during the first quarter. The
biggest decline in sales took place in the sales of new machines and in the
information system business.
The second round of employer-employee negotiations was completed during the past
quarter. As a result, 158 jobs were lost in the Finnish organisation, and
full-scale temporary lay-offs were negotiated for the entire personnel.
Temporary lay-offs have continued throughout the period under review. Of
different personnel categories, only R&D, sales and maintenance have worked at
full capacity during the first quarter.
These adaptation measures will only have their effect on operating expenses
during the second half of the year. The cost savings achieved during the first
quarter are attributable to extensive temporary lay-offs and the strict control
of other operating expenses.
During the period under review, we issued a hybrid loan of EUR 19 million to
increase the company's equity. The investments in enhancing the efficiency of
working capital are evidenced by an improved cash flow from business operations
compared with the comparable period.
The R&D organisation and R&D projects were re-organised early in the year. A
high priority was given to bio-energy applications, and resources were invested
in the rapid throughput and co-operation between different organisations in R&D
projects. New products and improvements to existing product families will be
presented in June at the Elmia Fair organised in Sweden.
NET SALES
Consolidated net sales amounted to EUR 37.5 (75.8) million, which is 50 per cent
less than in the comparable period. International business operations accounted
for 62.2 (64.3) per cent of total net sales.
Net sales were accumulated per region as follows: Nordic countries 55.8 (50.6)
per cent, the rest of Europe 20.5 (31.7) per cent, North and South America 20.7
(15.2) per cent, and other countries 3.0 (2.5) per cent.
The effects of the global recession were strongly reflected in the demand for
the company's products and services. The invoicing and delivery volumes of new
machines were significantly lower than in the previous year for most market
areas.
PROFIT PERFORMANCE
Operating result was EUR -8.7 (9.1) million. Operating result equalled -23.1
(12.0) per cent of net sales in the period under review. Return on capital
employed (ROCE) stood at -22.9 (30.5) per cent.
Staff costs for the period under review totalled EUR 8.9 (11.5) million, and
other operating expenses EUR 5.7 (7.5) million. The net total of financial
income and expenses was EUR -0.3 (-1.1) million. The exchange rate gains and
losses due to currency rate fluctuations were recognised under financial items.
The loss for the financial period amounted to EUR -9.4 (5.8) million. Diluted
and undiluted earnings per share (EPS) were EUR -0.34 (0.21). The company does
not have any items that could have a dilutive effect on the earnings per share.
BALANCE SHEET AND FINANCIAL POSITION
At the end of the period under review, the consolidated balance sheet total
amounted to EUR 162.4 (162.9) million. Inventories stood at EUR 84.2 (78.4)
million. Trade receivables totalled EUR 17.2 (31.3) million and liquid assets
stood at EUR 7.3 (5.3) million. Group equity stood at EUR 76.8 (82.2) million
and Parent Company equity at EUR 75.7 (75.9) million. The amount of
interest-bearing liabilities was EUR 55.2 (31.7) million. The parent company's
net receivables from other Group companies stood at EUR 52.1 (42.4) million. The
parent company's receivables from subsidiaries mainly consist of trade
receivables that were measured at their respective book values. Consolidated net
liabilities totalled EUR 47.3 (24.8) million, and the debt-equity ratio
(gearing) was 71.9 (38.5) per cent. The equity ratio stood at 47.5 (50.9) per
cent at the end of the period under review.
Cash flow from business operations amounted to EUR -1.8 (-3.8) million. Cash
flow from investment activities amounted to EUR -0.3 (-1.3) million. The release
of working capital and enhancement of cash flow are among the key elements of
the business enhancement programme in progress at Ponsse group.
During the period under review, Ponsse Plc issued an equity-based loan of EUR 19
million (a so-called hybrid loan), aimed at Finnish investors. The loan will
strengthen the Group's capital structure. The loan has a coupon rate of interest
of 12.0 per cent per annum. The loan has no maturity date, but the company is
entitled to redeem it after four years. The loan is treated as equity in the
consolidated financial statements prepared in accordance with IFRS. The
arrangement will not dilute the holdings of the company's shareholders.
A hybrid loan is an equity-based bond that takes a lower precedence than the
company's other liabilities. However, it has a higher priority than other items
included in the company's equity. The holders of hybrid loan bonds do not have
the rights of shareholders.
ORDER INTAKE AND ORDER BOOKS
The order intake for the period totalled EUR 29.0 (66.2) million, while
period-end order books were valued at EUR 32.9 (100.5) million. The order books
included the dealers' minimum purchase commitments, based on previous practice.
DISTRIBUTION NETWORK
No material changes took place in the Group structure during the period under
review.
The subsidiaries included in the Ponsse Group are Epec Oy, Finland; OOO Ponsse,
Russia; Ponsse AB, Sweden; Ponsse AS, Norway; Ponsse Asia-Pacific Ltd, Hong
Kong; Ponsse China Ltd, China; Ponsse Latin America Ltda, Brazil; Ponsse North
America, Inc., United States of America; Ponssé S.A.S., France; Ponsse UK Ltd,
Great Britain; and Ponsse Uruguay S.A., Uruguay. Sunit Oy in Kajaani, Finland,
is an affiliated company in which Ponsse Plc has a holding of 34 per cent.
CAPITAL EXPENDITURE AND R&D
The Group's R&D expenses totalled EUR 1.4 million (EUR 1.6 million) during the
period under review. The amount of R&D expenses capitalised during the period
was EUR 168 thousand (EUR 214 thousand).
Capital expenditure totalled EUR 0.3 million (EUR 1.3 million). It mainly
consisted of normal maintenance and replacement investments in plant and
machinery.
MANAGEMENT
The Group's Communication Director, Master of Forestry Jari Mononen, M.Sc. (Agr.
& For.) and the Director for Strategy and Customer Cooperation Hannu Kivelä,
M.Sc. (Agr. & For.) left the company during the period under review.
Jerry Wannberg, M.Sc. (Tech.) was appointed CEO of Ponsse AB from 15 June 2009.
PERSONNEL
The Group had an average staff of 943 (992) during the period and employed 916
(1020) people at period-end.
The employer-employee negotiations initiated in December 2008 ended on 3
February 2009. As a result of the negotiations, the number of Parent Company
employees will decrease by 158 compared to the January 2009 figure of
approximately 650. In addition to the redundancies effected during February, the
negotiations resulted in a decision to have temporary lay-offs of fixed duration
for all personnel groups and temporary lay-offs lasting until further notice for
29 persons. The lay-offs will take place during 2009, and their extent will be
dictated by the situation prevailing at the time. The people who were made
redundant have no obligation to work during their periods of notice. The payroll
costs, including social security contributions, for the periods of notice will
amount to approximately EUR 1.3 million during the period 1 April - 31 December
2009, most of which will be incurred during the latter half of the year.
The employer-employee negotiations held at Epec Oy, a fully-owned subsidiary of
Ponsse Plc, ended on 20 February 2009. The negotiations resulted in a decision
to adapt the operations to the changed market situation. The methods of
adaptation include arrangements regarding holiday bonuses and temporary lay-offs
of fixed duration. The lay-offs will start on 1 August 2009 at the earliest, and
they will all be implemented by 31 December 2009.
SHARE PERFORMANCE
The trading volume of Ponsse Plc shares for 1 January - 31 March 2009 totalled
970,864, accounting for 3.5 per cent of the total number of shares. Share
turnover came to EUR 4.0 million, and the period's lowest and highest share
prices were EUR 3.30 and EUR 5.24, respectively.
At the end of the period, the share price stood at EUR 3.34 and market
capitalisation totalled EUR 93.5 million.
At the end of the reporting period, the company had 47,900 treasury shares in
its possession.
GOVERNANCE
The company's Board of Directors has confirmed that the company will observe a
new code of governance that entered into force on 1 January 2009. The code is
based on the recommendation approved by the Securities Market Association in
October 2008, entitled ”Suomen listayhtiöiden hallinnointikoodi (Corporate
Governance)”.
The new code of governance can be viewed on Ponsse's website in the Investors
section.
BUSINESS RISKS AND THEIR MANAGEMENT
The global economic and financial uncertainty continued during the period under
review. This uncertainty is strongly reflected in the company's business. The
predictability of business is fundamentally lower than in normal circumstances.
Estimates regarding improvements in the economic situation are uncertain.
The possible dragging on of the recession will increase the risks associated
with the functionality of the subcontractor and supplier network. Ponsse aims to
manage these risks through partnership cooperation. The financial standing of
suppliers is monitored more intensely than normal. The company has also started
the process of screening alternative suppliers. As part of its risk management
efforts related to the availability of certain key components, the company has
chosen to manufacture these components in-house.
The decreasing production and invoicing volumes increase the risk regarding
business profitability in the Group's different business units. A Group-level
adjustment programme has been initiated in order to stabilise the situation. It
involves adjusting operating expenses for the weaker demand. Should the markets
further deteriorate from the current exceptionally poor state, further
intensification and extension of the adjustment and efficiency measures will
have to be considered. The Parent Company will monitor the changes in asset
values of Group receivables and the associated risk of impairment.
The developments in maintenance services and spare part sales have a causal link
with the utilisation rates of machines. The general economic situation may lead
to lower harvesting volumes and utilisation rates.
The sales of information and control systems are closely linked to economic
developments and to the global demand for heavy machinery. The markets are being
intensively monitored with a view to adjusting operating expenses to demand when
required.
The economic turbulence has increased currency rate fluctuations and borrowing
costs. The key objectives of the company's financing risk management include
controlling liquidity, interest and currency risks. Ponsse has ensured its
liquidity by means of credit limit agreements with a number of financial
institutions. The company has issued covenants as security for its financial
liabilities. In order to minimise the impact of any adverse changes in interest
rates the company uses interest rate swaps and credits tied to different
reference rates. Derivative contracts and currency-denominated credits are used
to minimise the negative effect of changes in exchange rates. The financial
unrest increases the uncertainties related to sales receivables. The terms and
conditions of sales against invoice and receivables monitoring have been
reviewed.
Any changes in the tax and customs legislation in countries where Ponsse exports
may pose further challenges to its export trade.
OUTLOOK FOR THE FUTURE
Estimates regarding the normalisation of the economy are uncertain. The recovery
of forest machine markets will depend on the recovery of demand for forestry
industry products and wood demand as well as of the stabilisation of financial
markets. The company's business has low predictability.
The cost-cutting measures implemented by the company will take effect during the
latter half of 2009. Manufacturing capacity will be adjusted to demand by using
temporary lay-offs. The company continues to invest in R&D and sales.
Net sales for the first six months will be lower than in the comparable period
in the previous year, and the company will make an operating loss. Net sales for
the whole year are also expected to be lower than in the previous year,
resulting in an operating loss.
PONSSE GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS | |
--------------------------------------------------------------------------------
| | | 1-3/09 | 1-3/08 | 1-12/08 | |
--------------------------------------------------------------------------------
| NET SALES | | 37,539 | 75,779 | 293,015 | |
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in | -1 852 | 6,447 | 7,885 | |
| inventories of finished goods | | | | |
| and work in progress | | | | |
--------------------------------------------------------------------------------
| Other operating income | | 303 | 428 | 2,608 | |
--------------------------------------------------------------------------------
| Raw materials and | | -28,718 | -53,323 | -203,082 | |
| services | | | | | |
--------------------------------------------------------------------------------
| Expenditure on | -8 944 | -11,514 | -48,175 | |
| employment-related benefits | | | | |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -1,323 | -1,185 | -5,037 | |
--------------------------------------------------------------------------------
| Other operating | | -5,678 | -7,541 | -33,586 | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING RESULT | | -8,673 | 9,091 | 13,628 | |
--------------------------------------------------------------------------------
| Share of results of associated | -48 | 76 | 91 | |
| companies | | | | |
--------------------------------------------------------------------------------
| Financial income and expenses | -258 | -1,058 | -7,462 | |
--------------------------------------------------------------------------------
| RESULT BEFORE TAXES | -8 979 | 8,109 | 6,258 | |
--------------------------------------------------------------------------------
| Income taxes | | -410 | -2,303 | -1,907 | |
--------------------------------------------------------------------------------
| NET RESULT FOR THE | | -9,389 | 5,807 | 4,351 | |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER ITEMS INCLUDED | | | | | |
| IN TOTAL COMPREHENSIVE | | | | | |
| INCOME: | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 102 | 540 | 871 | |
| associated with a foreign unit | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR | -9,287 | 6,347 | 5,222 | |
| THE PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted and undiluted | | -0.34 | 0.21 | 0.16 | |
| earnings per share | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (EUR 1,000)
--------------------------------------------------------------------------------
| | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| ASSETS | 31.3.09 | 31.3.08 | 31.12.08 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 6,108 | 4,517 | 6,123 |
--------------------------------------------------------------------------------
| Goodwill | 3,454 | 3,723 | 3,683 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 26,726 | 25,819 | 27,558 |
--------------------------------------------------------------------------------
| Financial assets | 109 | 103 | 109 |
--------------------------------------------------------------------------------
| Holdings in associated companies | 1,671 | 1,874 | 1,889 |
--------------------------------------------------------------------------------
| Non-current receivables | 1,910 | 378 | 1,820 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,903 | 1,933 | 3,121 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 42,882 | 38,347 | 44,303 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 84,180 | 78,418 | 88,308 |
--------------------------------------------------------------------------------
| Trade receivables | 17,202 | 31,348 | 22,155 |
--------------------------------------------------------------------------------
| Income tax receivables | 4,358 | 525 | 5,023 |
--------------------------------------------------------------------------------
| Other current receivables | 6,450 | 8,991 | 6,916 |
--------------------------------------------------------------------------------
| Liquid assets | 7,321 | 5,311 | 8,095 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 119,512 | 124,593 | 130,497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 162,394 | 162,941 | 174,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 7,000 | 7,000 | 7,000 |
--------------------------------------------------------------------------------
| Other reserves | 18,354 | -645 | -646 |
--------------------------------------------------------------------------------
| Translation differences | -1,042 | -1,215 | -1,725 |
--------------------------------------------------------------------------------
| Retained earnings | 52,517 | 77,074 | 62,484 |
--------------------------------------------------------------------------------
| EQUITY OWNED | | | |
--------------------------------------------------------------------------------
| BY PARENT COMPANY SHAREHOLDERS | 76,830 | 82,214 | 67,113 |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 76,830 | 82,214 | 67,113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 26,321 | 19,528 | 26,140 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 530 | 737 | 556 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 857 | 30 | 861 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT LIABILITIES | 27,708 | 20,295 | 27,556 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 28,904 | 12,147 | 46,769 |
--------------------------------------------------------------------------------
| Provisions | 6,396 | 4,407 | 6,058 |
--------------------------------------------------------------------------------
| Tax liabilities for the period | 29 | 813 | 76 |
--------------------------------------------------------------------------------
| Trade creditors and other current | 22,527 | 43,065 | 27,228 |
| liabilities | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 57,856 | 60,431 | 80,131 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 162,394 | 162,941 | 174,800 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
--------------------------------------------------------------------------------
| | | IFRS | IFRS | IFRS |
--------------------------------------------------------------------------------
| | | 1-3/09 | 1-3/08 | 1-12/08 |
--------------------------------------------------------------------------------
| BUSINESS OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Net result for the period | | -9,389 | 5,807 | 4,351 |
--------------------------------------------------------------------------------
| Adjustments: | | | | |
--------------------------------------------------------------------------------
| Financial income and | | 258 | 1,058 | 7,462 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Share of the results of associated | 48 | -76 | -91 |
| companies | | | |
--------------------------------------------------------------------------------
| Depreciation and | | 1,323 | 1,185 | 5,037 |
| amortisation | | | | |
--------------------------------------------------------------------------------
| Income taxes | | 205 | 2,617 | 2,378 |
--------------------------------------------------------------------------------
| Other adjustments | | 512 | 410 | -1,827 |
--------------------------------------------------------------------------------
| Cash flow before change in working | -7,043 | 11,000 | 17,308 |
| capital | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in working capital: | | | | |
--------------------------------------------------------------------------------
| Change in current | | |
--------------------------------------------------------------------------------
| non-interest-bearing receivables | 5,394 | -3,903 | 7,086 |
--------------------------------------------------------------------------------
| Change in inventories | | 4,127 | -12,783 | -22,673 |
--------------------------------------------------------------------------------
| Change in current | | |
--------------------------------------------------------------------------------
| non-interest-bearing | | -4,567 | 5,279 | -9,718 |
| creditors | | | | |
--------------------------------------------------------------------------------
| Change in provisions for | | 338 | 66 | 1,717 |
| liabilities and charges | | | | |
--------------------------------------------------------------------------------
| Interest received | | 39 | 57 | 281 |
--------------------------------------------------------------------------------
| Interest paid | | -874 | -479 | -2,450 |
--------------------------------------------------------------------------------
| Other financial items | | 417 | -702 | -4,966 |
--------------------------------------------------------------------------------
| Income taxes paid | | 413 | -2,360 | -7,355 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM BUSINESS | | -1,756 | -3,825 | -20,770 |
| OPERATIONS (A) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INVESTMENTS | | | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible | -264 | -1,313 | -8,509 |
| assets | | | |
--------------------------------------------------------------------------------
| Investments in other assets | 0 | 27 | 27 |
--------------------------------------------------------------------------------
| Repayment of loan | | 0 | 0 | 0 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Dividends received | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| CASH OUTFLOW FROM INVESTMENT | | -264 | -1,286 | -8,481 |
| ACTIVITIES (B) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCING | | | | |
--------------------------------------------------------------------------------
| Hybrid loan | | 19,000 | 0 | 0 |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | | |
--------------------------------------------------------------------------------
| non-current loans | | -17,731 | -4,931 | 29,422 |
--------------------------------------------------------------------------------
| Change in current | | | | |
--------------------------------------------------------------------------------
| interest-bearing liabilities | | 25 | 31 | 309 |
--------------------------------------------------------------------------------
| Withdrawal/Repayment of | | | | |
--------------------------------------------------------------------------------
| non-current loans | | 178 | 2,811 | 10,253 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | -134 | -147 | 122 |
--------------------------------------------------------------------------------
| Change in non-current receivables | -90 | 25 | -1,417 |
--------------------------------------------------------------------------------
| Dividends paid | | 0 | 0 | -13,976 |
--------------------------------------------------------------------------------
| NET CASH OUTFLOW FROM | | 1,247 | -2,211 | 24,713 |
| FINANCING (C) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid assets (A+B+C) | -774 | -7,321 | -4,538 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets on 1 Jan | | 8,095 | 12,633 | 12,633 |
--------------------------------------------------------------------------------
| Liquid assets on 30 Mar / 31 Dec | 7,321 | 5,311 | 8,095 |
--------------------------------------------------------------------------------
RECONCILIATION OF CHANGES IN EQUITY (EUR 1,000)
--------------------------------------------------------------------------------
| A = Share Capital | | | | | | |
--------------------------------------------------------------------------------
| B = Share premium and other reserves | | | | |
--------------------------------------------------------------------------------
| C = Translation differences | | | | | |
--------------------------------------------------------------------------------
| D = Own shares | | | | | |
--------------------------------------------------------------------------------
| E = Retained earnings |
--------------------------------------------------------------------------------
| F = Total capital and | | | | | |
| reserves | | | | | |
--------------------------------------------------------------------------------
| | EQUITY OWNED BY PARENT COMPANY | | |
| | SHAREHOLDERS | | |
--------------------------------------------------------------------------------
| | A | B | C | D | E | F |
--------------------------------------------------------------------------------
| EQUITY 1 JAN 2009 | 7,000 | 20 | -72 | -665 | 60,830 | 67,113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend | | | | | | |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Purchase of the | | | | | | |
| company's own | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | 19,000 | | | | 19,000 |
--------------------------------------------------------------------------------
| Total | | | 102 | | -9,389 | -9,287 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 MAR 2009 | 7,000 | 19,020 | 30 | -665 | 51,441 | 76,826 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY 1 JAN 2008 | 7,000 | 20 | -943 | 0 | 70,455 | 76,532 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividend | | | | | | |
| distribution | | | | | | |
--------------------------------------------------------------------------------
| Purchase of the | | | | -665 | | -665 |
| company's own | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 540 | | 5,807 | 6,347 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| EQUITY 31 MAR 2008 | 7,000 | 20 | -403 | -665 | 76,262 | 82,214 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | 31.3.09 | 31.3.08 | 31.12.08 |
--------------------------------------------------------------------------------
| 1. LEASING COMMITMENTS (EUR | | 4,993 | 2,407 | 5,903 |
| 1,000) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. CONTINGENT LIABILITIES (EUR | | 31.3.09 | 31.3.08 | 31.12.08 |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| Guarantees given on behalf of | | 1,038 | 1,562 | 1,090 |
| others | | | | |
--------------------------------------------------------------------------------
| Repurchase commitments | | | 4,749 | 3,278 | 4,049 |
--------------------------------------------------------------------------------
| Other commitments | | | 2,025 | 1,416 | 1,443 |
--------------------------------------------------------------------------------
| TOTAL | | | 7,812 | 6,256 | 6,582 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. PROVISIONS (EUR | | | Guarantee provision | |
| 1,000) | | | | |
--------------------------------------------------------------------------------
| 1.1.2009 | | | 6,058 | | |
--------------------------------------------------------------------------------
| Increase | | | 502 | | |
--------------------------------------------------------------------------------
| Used provisions | | | -164 | | |
--------------------------------------------------------------------------------
| 31.3.2009 | | | 6,396 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | | | 31.3.09 | 31.3.08 | 31.12.08 |
--------------------------------------------------------------------------------
| R&D expenditure, MEUR | | 1.4 | 1.6 | 7.6 |
--------------------------------------------------------------------------------
| Capital expenditure, MEUR | 0.3 | 1.3 | 8.5 |
--------------------------------------------------------------------------------
| as % of turnover | | | 0.7 | 1.7 | 2.9 |
--------------------------------------------------------------------------------
| Average number of | | | 943 | 992 | 1,044 |
| employees | | | | | |
--------------------------------------------------------------------------------
| Order books, MEUR | | | 32.9 | 100.5 | 41.5 |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 47.5 | 50.9 | 38.4 |
--------------------------------------------------------------------------------
| Diluted and undiluted earnings per share, | -0.34 | 0.21 | 0.16 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | 2.74 | 2.94 | 2.40 |
--------------------------------------------------------------------------------
FORMULAE FOR FINANCIAL INDICATORS
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Equity ratio, %:
Equity + minority interest
----------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Earnings before taxes - taxes (incl. change in deferred taxes) -/+ minority
interest
------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Capital and reserves
----------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues
--------------------------------------------------------------------------------
| ORDER INTAKE, MEUR | | | 1-3/09 | 1-3/08 | 1-12/08 |
--------------------------------------------------------------------------------
| Ponsse Group | | | 29.0 | 66.2 | 224.4 |
--------------------------------------------------------------------------------
The interim report has been prepared in accordance with the IFRS recognition and
measurement principles; however, it does not comply with all of the requirements
of IAS 34. From 1.1.2009, the group has applied the following new and revised
standards: IFRS 8, Operating Segments, and IAS 1, Presentation of Financial
Statements. The amendment of IFRS 8 will not materially change the information
shown in these segments because the Group's earlier segment-based reporting was
based on the Group's internal reporting structures. The amendment of IAS 1 will
have an impact on the presentation method of the profit and loss account and the
changes in equity.
The accounting policies for the interim report are compatible with those for the
financial statements prepared on 31 December 2008.
The above figures have not been audited.
The above figures have been rounded off and may therefore differ from those
given in the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently known by the company and its current decisions and plans.
Although the company believes that the future expectations are well founded,
there is no certainty that said expectations will prove to be correct. This is
why the results may significantly deviate from the assumptions included in the
future-oriented statements as a result of, among other things, changes in the
economy, markets, competitive conditions, legislation or currency exchange
rates.
Vieremä 21 April 2009
PONSSE PLC
Juho Nummela
President and CEO
Mikko Paananen
CFO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 20 768 8914 or +358 400 495 690
Mikko Paananen, CFO, tel. +358 20 768 8648 or +358 400 817 036
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
