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Sector
Technology
Size
Small Cap
Market Cap £203.9m
Enterprise Value £202.1m
Revenue £67.3m
Position in Universe 708th / 1835

EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2011

Tue 1st November, 2011 6:00am

STOCK EXCHANGE RELEASE            

Free for publication on November 1, 2011, at 8.00 a.m. (CET+1)

EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2011

THE THIRD QUARTER NET SALES GREW YEAR-ON-YEAR. NET SALES IN JANUARY-SEPTEMBER DECREASED SLIGHTLY FROM PREVIOUS YEAR AND OPERATING RESULT WAS NEGATIVE.

SUMMARY 3Q 2011

- Net sales for the period was EUR 37.0 million (EUR 33.7 million, 3Q 2010), representing an increase of 9.7 % year-on-year. Net sales of the Automotive Business Segment grew to EUR 23.9 million (EUR 19.9 million, 3Q 2010), representing a 20.0% growth year-on-year. The Wireless Business Segment's net sales fell slightly, 4.8 %, to EUR 13.0 million (EUR 13.7 million, 3Q 2010).

- Operating loss was EUR -3.1 million (EUR -11.5 million, including EUR 8.3 million impairment of accounts receivable from TerreStar, 3Q 2010). Operating loss of the Automotive Business Segment was EUR -1.4 million (operating profit of EUR 0.1 million, 3Q 2010). The Wireless Business Segment's operating loss was EUR -1.7 million (EUR -11.7 million, including EUR 8.3 million impairment of accounts receivable from TerreStar, 3Q 2010).

- EBITDA was EUR -1.2 million (EUR -9.3 million, 3Q 2010).

- Cash flow from operating activities was EUR -6.6 million (EUR 0.2 million, 3Q 2010). The net cash flow was EUR -10.6 million (EUR -30.1 million, including the distribution of EUR 25.9 million from the share premium fund, 3Q 2010).

- Earnings per share were EUR -0.02 (EUR -0.07, 3Q 2010).

- On August 1, 2011 EB announced the appointment of Mr. Alexander Kocher (M. Sc., Electrical Engineering), 50, as the President of the Automotive Business Segment and Managing Director of Elektrobit Automotive GmbH, effective on November 1, 2011. Mr. Kocher will transfer to EB from Wind River GmbH, a subsidiary of Intel Inc, where he has worked as Vice President and General Manager of Automotive Business Unit.

SUMMARY JANUARY-SEPTEMBER 2011

- Net sales of the period amounted to EUR 113.1 million (EUR 119.9 million, 1-9 2010), representing a decrease of 5.7 % year-on-year.  Net sales of the Automotive Business Segment grew to EUR 70.2 million (EUR 57.0 million, 1-9 2010), representing a 23.1 % growth year-on-year. The Wireless Business Segment's net sales fell by 31.2 % to EUR 42.9 million (EUR 62.4 million, 1-9 2010).

- Operating loss was EUR -7.5 million (EUR -9.7 million, including EUR 8.3 million impairment of accounts receivable from TerreStar, 1-9 2010). The operating loss of Automotive Business Segment was EUR -1.3 million (operating profit of EUR 0.8 million, 1-9 2010) and the operating loss of Wireless Business Segment was EUR -6.1 million (EUR -10.4 million, including EUR 8.3 million impairment of accounts receivable from TerreStar, 1-9 2010).

- EBITDA was EUR -0.6 million (EUR -3.2 million, 1-9 2010)

- Cash flow from operating activities was EUR -1.8 million (EUR 6.3 million, 1-9 2010). The net cash flow was EUR -13.3 million (EUR -29.2 million, 1-9 2010).

- Cash and other liquid assets totaled EUR 7.2 million (EUR 29.8 million, 1-9 2010).

- Equity ratio remained strong at 63.6% (66.9%, 1-9 2010).

- Earnings per share were EUR -0.06 (EUR -0.08, 1-9 2010).

- Earlier on October 19, 2010, EB's customer TerreStar Networks Inc. filed for voluntary petition for reorganization, and its parent company TerreStar Corporation filed for voluntary petition for reorganization on February 16, 2011. Under the review period there were no changes in valuation in EB's receivables from these companies.

EB'S CEO JUKKA HARJU:

"EB's net sales grew during the third quarter, representing an increase of 9.7 % year-on-year, due to the continued strong growth of the Automotive Business Segment. Net sales of Wireless Business Segment almost reached the net sales level of the last year. During 2011 EB has succeeded to grow its Wireless business especially in defence and mobile infrastructure markets to replace the strongly reduced net sales in the satellite terminal business.

During the third quarter operating result was lower than expected in both Business Segments - in Automotive Business Segment due to the higher than expected project costs, and in Wireless Business Segment due to the decreased net sales caused by the delays in the customer projects. Compared to the second quarter, the operating result was lower also due to the seasonality of EB's business and holiday period.

In the Automotive Business Segment, the demand for EB's software products and services remained good. The carmakers invest into new infotainment systems, in-car navigation systems, driver assistance solutions and ECU (Electrical Control Unit) software development for their new car models.

In the Wireless Business Segment, EB proceeded in strengthening its offering to the defence and security markets by releasing an Android-based mobile platform for both security and defence markets and three products targeted to defence markets. EB also announced the agreement to develop and deliver a tactical wireless IP network for Finnish Defence Forces.

Improving the profitability remains our main short term objective. During the fourth quarter both Business Segments have a good opportunity to improve their profitability from the third quarter."

OUTLOOK FOR THE SECOND HALF OF 2011

The demand for software products and services is estimated to grow in the automotive industry and EB's net sales is expected to increase in the Automotive Business Segment. Due to the strengthened demand, the net sales of EB's Wireless Business Segment is expected grow.

EB expects for the second half of 2011 that net sales will be higher than in the second half of 2010 (EUR 75.6 million, 2H 2010) and that the operating result will be positive (operating loss of EUR -19.2 million, 2H 2010).  Due to the seasonality of EB's business and due to the holiday period during the third quarter, the net sales and operating result in the fourth quarter are expected to be higher than in the third quarter of 2011.

The profit outlook for the second half of 2011 is based on the assumption that there will be no further bookings of impairments of EB's accounts receivable from TerreStar Networks Inc. and TerreStar Corporation. It is possible that, based on later information related to reorganizations of TerreStar Networks and TerreStar Corporation, this outlook may need to be reconsidered. Due to the uncertainties related to the outcome of reorganization processes of TerreStar Networks and TerreStar Corporation, the credit risk may still grow during the second half of 2011.  More specific market outlook is presented under the "Business Segments' development during July-September 2011 and market outlook" section, and uncertainties regarding the filings for reorganization of TerreStar Networks and TerreStar Corporation, the amount of receivables and collecting the receivables as well as other uncertainties regarding the outlook under "Risks and Uncertainties" section.

Information on TerreStar Networks' and TerreStar Corporation's reorganizations are presented in the October 20 and 25, November 20, December 30, 2010, and February 17, 2011, stock exchange releases as well as in EB's interim reports and financial statement at www.elektrobit.com.

INVITATION TO A PRESS CONFERENCE

EB will hold a press conference on the January-September interim report 2011 for media, analysts and institutional investors in Finland, Espoo, Keilasatama 5, meeting room Laine on Tuesday, November 1, 2011, at 11.00 a.m. (CEST+1). The conference will also be held as a conference call and the presentation will be shown simultaneously in the Internet through WebEx. The conference will be held in English. For more information on joining the conference please go to www.elektrobit.com/investors.

EB, Elektrobit Corporation

EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales for the year 2010 totaled MEUR 161.8. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com

EB, ELEKTROBIT CORPORATION, INTERIM REPORT, JANUARY-SEPTEMBER 2011

FINANCIAL PERFORMANCE DURING JANUARY-SEPTEMBER 2011

(Corresponding figures are for January-September 2010 unless otherwise indicated)

EB's net sales during January-September 2011 decreased by 5.7 per cent to EUR 113.1 million (EUR 119.9 million). Operating loss was EUR -7.5 million (EUR -9.7 million, including EUR 8.3 million impairment of accounts receivable from TerreStar).

Net sales of the Automotive Business Segment grew strongly in January-September 2011 to EUR 70.2 million (EUR 57.0 million), representing a 23.1% growth year-on-year. The operating loss was EUR -1.3 million (operating profit of EUR 0.8 million). During the first quarter the operating result of the Automotive Business Segment developed as planned, but was lower than expected during the second and third quarters due to the higher than estimated project costs.

The Wireless Business Segment's net sales in January-September 2011 fell by 31.2% year-on-year to EUR 42.9 million (EUR 62.4 million). The significant decrease in net sales was mainly due to the remarkable decline in the volume of the satellite terminal business. Wireless Business Segment's net sales in the third quarter 2011 was almost at the same level as in the third quarter of 2010.

The operating loss of the Wireless Business Segment was EUR -6.1 million (EUR -10.4 million, including EUR 8.3 million impairment of accounts receivable from TerreStar). The operating loss in the reporting period mainly resulted from the first quarter of 2011, as the order book development in the new satellite communication solution business, to replace the discontinued satellite terminal business for TerreStar at the end of 2010, was slower than expected. In addition, the operating result was affected by the increased competition in the area of smart phone related R&D services. During the third quarter the operating result weakened due to the seasonality of EB's business and delays in the customer projects.

The total R&D investments during the reporting period grew to EUR 18.0 million (EUR 15.5 million), representing 15.9 % of the net sales (12.9 %). EUR 4.9 million of R&D investments were capitalized (EUR 3.3 million).

CONSOLIDATED INCOME STATEMENT (MEUR) 1-9 2011 1-9 2010
  9 months 9 months
NET SALES 113.1 119.9
OPERATING PROFIT (LOSS) -7.5 -9.7
Financial income and expenses -0.7 -0.9
RESULT BEFORE TAX -8.2 -10.6
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS -8.2 -10.2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -8.4 -9.8
     
Result for the period attributable to:
  Equity holders of the parent -8.4 -10.6
  Non-controlling interests 0.1 0.3
Total comprehensive income for the period attributable to:    
  Equity holder of the parent -8.6 -10.1
  Non-controlling interests 0.1 0.3
     
Earnings per share EUR continuing operations -0.06 -0.08

- Cash flow from operating activities was EUR -1.8 million (EUR 6.3 million).

- Equity ratio was 63.6% (66.9%).

- Net gearing was 3.0% (-20.7%).

QUARTERLY FIGURES

The distribution of the Group's overall net sales and profit, MEUR:

  3Q 11 2Q 11 1Q11 4Q10 3Q10
Net sales 37.0 39.7 36.5 41.8 33.7
Operating profit (loss) -3.1 -0.5 -3.9 -7.7 -11.5
Operating profit (loss) without non-recurring costs -3.1 -0.5 -3.9 -3.2 -3.2
Result before taxes -3.1 -0.8 -4.3 -8.0 -10.6
Result for the period -3.1 -0.8 -4.3 -5.4 -9.0

Non-recurring items are exceptional gains and costs that are not related to normal business operations and occur only seldom. These items include capital gains or losses, significant changes in asset values such as write-downs or reversals of write-downs, significant restructuring costs, or other items that the management considers to be non-recurring. When evaluating a non-recurring item, the euro translation value of the item is considered, and in case of a change in an asset value, it is measured against the total value of the asset.

The distribution of net sales by Business Segments, MEUR:    

  3Q 11 2Q 11 1Q11 4Q10 3Q10
Automotive 23.9 22.7 23.6 23.1 19.9
Wireless 13.0 17.1 12.7 18.6 13.7
Corporation total 37.0 39.7 36.5 41.8 33.7

The distribution of net sales by market areas, MEUR and %:

  3Q 11 2Q 11 1Q11 4Q10 3Q10
Asia 3.3

8.8%
4.0

10.2%
2.7

7.4%
4.4 10.6% 1.8

5.4%
Americas 4.9

13.4%
5.5

14.0%
5.1

13.9%
10.8

25.8%
9.4

27.7%
Europe 28.8

77.8%
30.1

75.9%
28.7

78.7%
26.6

63.6%
22.5

66.8%

Net sales and operating profit development by Business Segments and Other businesses, MEUR:

  3Q 11 2Q 11 1Q11 4Q10 3Q10
Automotive

Net sales to external customers

Net sales to other segments

Operating profit (loss)
 

23.9

0.0

-1.4
 

22.7

0.0

-0.5
 

23.6

0.0

0.6
 

23.1

0.0

1.1
 

19.9

0.0

0.1
Wireless

Net sales to external customers

Net sales to other segments

Operating profit (loss)
 

12.9

0.1

-1.7
 

16.9

0.2

0.1
 

12.7

0.0

-4.6
 

18.6

0.0

-8.8
 

13.7

0.0

-11.7
Other businesses

Net sales to external customers

Operating profit (loss)
 

0.2

-0.1
 

0.0

-0.1
 

0.1

0.1
 

0.2

0.1
 

0.2

0.1
Total

Net sales

Operating profit (loss)
 

37.0

-3.1
 

39.7

-0.5
 

36.5

-3.9
 

41.8

-7.7
 

33.7

-11.5

BUSINESS SEGMENTS' DEVELOPMENT DURING JULY-SEPTEMBER 2011 AND MARKET OUTLOOK

(Corresponding figures are for July-September 2010 unless otherwise indicated)

EB's reporting is based on two segments which are the Automotive and Wireless Business Segments.

AUTOMOTIVE

The Automotive Business Segment's offering consists of in-car software products, navigation software for aftermarket devices and development services for the automotive industry with leading car manufacturers, car electronics suppliers and automotive chipset suppliers as customers. By combining its software products and R&D services EB is creating unique, customized solutions for its automotive customers.

During the third quarter of 2011 the net sales of the Automotive Business Segment amounted to EUR 23.9 million (EUR 19.9 million), representing a strong 20.0% growth year-on-year. The operating loss was EUR -1.4 million (operating profit of EUR 0.1 million). The operating result was lower than anticipated due to the higher than expected project costs.

Solid overall market demand continued for EB's services and own automotive grade software products adapted and integrated to the customer specific requirements. EB continued to grow during the third quarter in the infotainment, driver assistance and ECU (Electronic Control Unit) software markets.

EB continued its R&D investments in the automotive software products and tools, and released new product updates during the third quarter. As the first company to deliver a compliant software stack according to BMW requirements, EB introduced the production ready software development toolset supporting Autosar 4.0 standard to the automotive industry.

On August 1, 2011 EB announced the appointment of Mr. Alexander Kocher (M. Sc., Electrical Engineering), 50, as the President of the Automotive Business Segment and Managing Director of Elektrobit Automotive GmbH, effective on November 1, 2011. Mr. Kocher will transfer to EB from Wind River GmbH, a subsidiary of Intel Inc, where he has worked as Vice President and General Manager of Automotive Business Unit.

Automotive Market Outlook

The majority of the innovation and differentiation in the automotive industry is brought about by software and electronics. The share of electronics and software in cars has grown significantly during the past years. It is expected that the use of software in automotives continues to increase. The estimated annual automotive software market long-term growth rate in passenger cars is some 15% (Frost & Sullivan). The underlying world automotive market is also expected to grow steadily with a yearly rate of about 6% between 2010 and 2015 (CSM).

The increasingly sophisticated and networked features and growing performance foster the complexity of automotive electronics. At the same time consumers expect the same richness of features and user experience they know from the internet and mobile devices also from within the car. These development trends are driving the industry towards gradual separation of software and hardware in electronics solutions. Hence it is necessary for managing the architectural software layer appropriately and to aim for efficiency in innovation and implementation. The use of standard software solutions is expected to increase in the automotive industry. This enables faster innovation, improves quality and development efficiency and reduces complexity related to deployment of software.

The fundamental industry migration and consequent growth of the automotive software market will continue. Cost pressures of the automotive industry are expected to accelerate the need of productized and efficient software solutions EB is offering.

EB's net sales cumulating from the automotive industry are currently primarily driven by the development of software and software platforms for new cars. Hence the dependency of EB's net sales on car production volumes is currently limited, however, the direct dependency is expected to increase as a result of the EB's transition towards software product business models over the forthcoming years.

WIRELESS

The Wireless Business Segment offers development services, customized solutions and radio channel emulator products for industries and authorities utilizing wireless technologies.

Net sales of the Wireless Business Segment during the third quarter of 2011 was EUR 13.0 million (EUR 13.7 million), representing a decline of 4.8% year-on-year. The operating loss was EUR -1.7 million (EUR -11.7 million, including EUR 8.3 million impairment of accounts receivable from TerreStar).

The third quarter net sales and operating result of Wireless Business Segment were expectedly lower than in the previous quarter due to the seasonality of the business and holiday period in the third quarter. However, the operating result was slightly lower than anticipated mainly due to the lower net sales caused by the delays in the customer projects.

The demand in the defence, security, mobile infrastructure and radio channel emulator markets remained at a good level. EB continued its investments in radio channel emulation products and next generation special terminals product platforms.

During the third quarter EB announced an Android-based mobile platform for defence and security markets and introduced three new products targeted to defence markets. EB and Finnish Defence Forces released an agreement between the parties, according to which Finnish Defence Forces will take EB-designed tactical wireless IP network into use.

Wireless Market Outlook

In the mobile infrastructure market the use of LTE standard, which improves the performance of radio channel and mobile phone networks, is expected to continue to gain strength. EB's business driven by LTE is expected to increase. Mastering of multi-radio technologies and end-to-end system architectures covering both terminals and networks has gained importance in the complex wireless technology industry. Fast implementation of LTE technology and a wide spectrum of bandwidth needed are creating opportunities for EB.

The growth of demand for smart phones and transitions in the related software architectures and platforms are expected to continue during 2011. The R&D services market for smart phones continues to be challenging and the continuing price pressure drives increasing off-shoring in the industry. The overall demand for R&D services for smart phones is expected to decrease in the future due to changes in the market environment. However, OEMs are expected to continue utilizing outsourcing for their R&D flexibility, which can create new business opportunities for EB.

The market for communications, interference and intelligence solutions targeted for public authorities is estimated to remain stable. EB's competence and long experience in software radio based solutions is expected to bring new business opportunities. The trend of adopting commercial technologies, such as LTE, is expected to continue on special verticals such as public safety. The networks used by public authorities often utilize dedicated spectrum blocks outside the commercial frequency bands, which generates the need for special user terminal variants for these networks.

The mobile satellite communication service industry is introducing new data and mobile communication services with new operators being formed and traditional ones upgrading their solutions and offerings. The market demand has been expected to move from the current reference design phase towards the launch of commercial products and services during the next few years. The filing for reorganization of TerreStar Networks Inc. has, however, delayed and brought uncertainties to the market development. Based on the current understanding the business relationship between EB and TerreStar will not continue.

The performance of radio channel is going to increase quickly when introducing new LTE technologies. This will create demand for advanced development tools during the next few years. The test tool market is expanding from the performance testing of LTE base stations to LTE terminals, where the over-the-air (OTA) technology will be widely used. EB provides world leading channel emulation tools for the development of MIMO based LTE, LTE-Advanced and other advanced radio technologies.

RESEARCH AND DEVELOPMENT

EB continued its investments in R&D in the automotive software products and tools, in radio channel emulation products and in next generation special terminals product platforms.

The total R&D investments during the third quarter of 2011 were EUR 5.7 million (EUR 5.4 million, 3Q 2010), equaling 15.5% of the net sales (16.0%, 3Q 2010). EUR 1.7 million of R&D investments were capitalized (EUR 1.6 million, 3Q 2010).

OUTLOOK FOR THE SECOND HALF OF 2011

The demand for software products and services is estimated to grow in the automotive industry and EB's net sales is expected to increase in the Automotive Business Segment. Due to the strengthened demand, the net sales of EB's Wireless Business Segment is expected grow.

EB expects for the second half of 2011 that net sales will be higher than in the second half of 2010 (EUR 75.6 million, 2H 2010) and that the operating result will be positive (operating loss of EUR -19.2 million, 2H 2010).  Due to the seasonality of EB's business and due to the holiday period during the third quarter, the net sales and operating result in the fourth quarter are expected to be higher than in the third quarter of 2011.

The profit outlook for the second half of 2011 is based on the assumption that there will be no further bookings of impairments of EB's accounts receivable from TerreStar Networks Inc. and TerreStar Corporation. It is possible that, based on later information related to reorganizations of TerreStar Networks and TerreStar Corporation, this outlook may need to be reconsidered. Due to the uncertainties related to the outcome of reorganization processes of TerreStar Networks and TerreStar Corporation, the credit risk may still grow during the second half of 2011.  More specific market outlook is presented under the "Business Segments' development during July-September 2011 and market outlook" section, and uncertainties regarding the filings for reorganization of TerreStar Networks and TerreStar Corporation, the amount of receivables and collecting the receivables as well as other uncertainties regarding the outlook under "Risks and Uncertainties" section.

Information on TerreStar Networks' and TerreStar Corporation's reorganizations are presented in the October 20 and 25, November 20, December 30, 2010, and February 17, 2011, stock exchange releases as well as in EB's interim reports and financial statement at www.elektrobit.com.

RISKS AND UNCERTAINTIES

EB has identified a number of business, market and finance related risk factors and uncertainties that can affect the level of sales and profits. Those of the greatest significance on a short term are those affecting the utilization and chargeability levels and average hourly prices of R&D services. On the ongoing financial period the global economic uncertainty may affect the demand for EB's services, solutions and products and provide pressure on e.g. volumes and pricing. It may also increase the risk for credit losses and weaken the availability and terms of financing.

On November 1, 2011, EB's receivables from TerreStar amounted to approximately USD 25.8 million (EUR 18.4 million as per exchange rate of October 31, 2011), which it has claimed in the Chapter 11 cases of both TerreStar Networks and TerreStar Corporation. In addition to the booked receivables, EB has also claimed additional costs in the amount of approximately USD 2.1 million (EUR 1.5 million as per exchange rate of October 31, 2011) and resulting mainly from the ramp down of the business operations between the parties. Thus, EB has asserted claims against each of the TerreStar entities in amounts totaling USD 27.9 million (EUR 20.0 million as per exchange rate of October 31, 2011).  Due to uncertainties related to the accounts receivable, EB booked an impairment of the accounts receivable in the amount of EUR 8.3 million during the second half of 2010.

On October 19, 2010, TerreStar Networks and certain other affiliates of TerreStar Corporation and on February 16, 2011, the parent company TerreStar Corporation filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code to strengthen their financial position.   Generally in a Chapter 11 case, any distribution of cash or other assets by a debtor to satisfy pre-bankruptcy claims of its creditors must be made under a Chapter 11 plan of reorganization or liquidation. Such plans must be approved by the United States Bankruptcy Court and (with limited exceptions) an affirmative vote of all classes of creditors whose claims will not be paid fully and immediately after the plan is approved by the court and becomes effective by its terms. 

Within the first four months of its Chapter 11 case, TerreStar Networks filed, then withdrew, a proposed plan of reorganization.  Subsequently, on July 7, 2011, the United States Bankruptcy Court approved the sale of substantially all TerreStar Networks' assets to Gamma Acquisition L.L.C., an acquisition subsidiary formed by Dish Network Corporation for about USD 1.375 billion. Based upon filings made by TerreStar Networks with the Bankruptcy Court, USD 1.345 billion of the purchase price has been funded to date, with the remainder of the purchase price payable at closing, and payments have been made to secured creditors from the sale proceeds in the amount of about USD 1.128 billion.  However, the sale will not result in an immediate distribution to general unsecured creditors.  EB's share of the TerreStar Networks' sale proceeds, and the timing of distribution, cannot be predicted with certainty at this time.  Any such distribution must be provided for under a Chapter 11 plan of liquidation to be filed, voted on and submitted to the court for approval, which to date has not occurred.

On July 22, 2011, TerreStar Corporation filed a reorganization plan with the Bankruptcy Court. Its plan contains only incomplete information on how EB's receivables will be treated in the reorganization. However, the plan suggests that unsecured claims (such as EB's) may be exchanged for new notes to be issued by a reorganized TerreStar Corporation in the face amount of each allowed claim.  It is also possible that some part of an allowed unsecured claim may be exchanged for shares in a new class of preferred stock in the reorganized entity.  The terms of these new notes and preferred stock are not available at this time.  Further, it is premature to speculate regarding distributions to creditors under this plan because the plan TerreStar Corporation filed may or may not obtain the necessary approvals, and the terms of the plan may change through negotiation with creditors. EB has objected to the disclosure statement accompanying the proposed plan on the ground that it does not provide adequate information of a kind, and in sufficient detail, to enable EB and other creditors to make an informed judgment about the plan.  EB has also formally sought further information to evaluate the filed incomplete plan and preliminary objected to the plan.

Recoveries by holders of claims against TerreStar Networks and TerreStar Corporation are to be funded by separate pools or streams of assets. Timing or amount of any payment either by TerreStar Networks or TerreStar Corporation cannot be predicted with certainty at this time.  However, subject to a great number of assumptions, EB anticipates that creditors of TerreStar Networks may expect to receive cash payment corresponding to a relatively small percentage of their allowed claims.  Under the plan proposed by TerreStar Corporation, its general unsecured creditors are to receive new promissory notes and possibly preferred stock, with a face value equivalent to their allowed claims.  Payment of the note obligations and any distributions to holders of preferred stock are to be funded by future revenues and profits of reorganized TerreStar Corporation.  For the reasons noted in the previous paragraph, it is premature to comment on the extent of EB's potential recovery.  Additionally, as part of the process of reconciling accounts in preparation for making distributions under a plan, Chapter 11 debtors often challenge the amount or validity of some creditor claims, and it is possible that either TerreStar Networks, TerreStar Corporation or another party in interest may object to EB's claims filed in the respective bankruptcy cases.  EB expects to vigorously defend any such objections to its claims, but speculation regarding the likely outcome of any such future dispute is premature at this time. Further, it is possible that, as part of the Chapter 11 process, either TerreStar Networks or TerreStar Corporation may seek to recover payments previously made to their creditors pursuant to various provisions of the Bankruptcy Code.  The risk that TerreStar Networks may attempt to recover payments from EB, or that such recovery actions, if attempted, may be successful, cannot be ruled out at this time.

Based on EB's current understanding, there is no reason to believe that there would be further impairment losses on EB's account receivable from TerreStar Networks and TerreStar Corporation. EB aims to collect the amounts owed to it in full through the Chapter 11 cases of TerreStar Networks and TerreStar Corporation, and/or for example through selling of the earlier mentioned accounts receivable. It is possible that based on later information related to the TerreStar Networks' and TerreStar Corporation's Chapter 11 cases, the above views may need to be reconsidered. Despite the TerreStar companies' efforts to reorganize, it is possible that the credit risk may still grow during the second half of 2011. At worst, the progress of the TerreStar Chapter 11 cases may result in significant further credit losses for EB. Should the accounts receivable not be collected at all, either from TerreStar Networks or TerreStar Corporation, an impairment loss and costs related to the collection process would additionally lower EB's operating result on a non-recurring basis by approximately EUR 10 million, at maximum (USD-nominated items as per exchange rate of October 31, 2011). However, this would not have any significant negative effect on the EB's cash flow.

As the EB's customer base consists mainly of companies operating in the fields of automotive and telecommunications, the company is exposed to market changes in these industries. EB believes that expanding the customer base will reduce dependence on individual companies and that the company will thereby be mainly affected by the general business climate in automotive and telecommunication industries. However, some parts of EB's business are more sensitive to customer dependency than others. Respectively, this may translate as accumulation of risk with respect to outstanding receivables and ultimately with respect to credit losses. The more specific market outlook is presented under the "Business Segments' development during the third quarter 2011 and market outlook" section.

EB's operative business risks are mainly related to following items: uncertainties and short visibility on customers' product program decisions, their make or buy decisions and on the other hand, their decisions to continue, downsize or terminate current product programs, ramping up and down project resources, availability of personnel in labour markets (in particular in Germany and Finland), timing and on the other hand successful utilization of the most important technologies and components, competitive situation and potential delays in the markets, timely closing of customer and supplier contracts with reasonable commercial terms, delays in R&D projects, activations based on customer contracts, obsolescence of inventories and technology risks in product development causing higher than planned R&D costs. In addition there are typical industry warranty and liability risks as well as risks related to management of intellectual property rights involved in selling EB's services, solutions and products.

Product delivery business model includes such risks as high dependency on actual product volumes, development of the cost of materials and production yields. The above-mentioned risks may manifest themselves as higher cost of product delivery, and ultimately, as lower profit. Revenues expected to come from new products for existing and new customers include normal timing risks.

More information on the risks and uncertainties affecting EB can be found on the Company's website at www.elektrobit.com

STATEMENT OF FINANCIAL POSITION AND FINANCING

The figures presented in the statement of financial position of September 30, 2011, are compared with the statement of the financial position of December 31, 2010 (MEUR). The figures for the period under review contain provision of EUR 1.3 million.

  9/2011 12/2010
Non-current assets 42.1 41.2
Current assets 64.0 83.0
Total assets 106.1 124.2
Share capital 12.9 12.9
Other equity 49.3 57.6
Non-controlling interests 1.4 1.3
Total shareholders' equity 63.6 71.8
Non-current liabilities 7.3 11.6
Current liabilities 35.2 40.7
Total shareholders' equity and liabilities 106.1 124.2

Net cash flow from operations during the period under review:

+ net profit +/- adjustment of accrual basis items EUR  -3.4 million
+ decrease in net working capital EUR  -1.4 million
- interest, taxes and dividends EUR  +3.0 million
= cash generated from operations EUR  -1.8 million
- net cash used in investment activities EUR  -7.4 million
- net cash used in financing EUR  -4.1 million
= net change in cash and cash equivalents EUR  -13.3million

The amount of accounts and other receivables, booked in current receivables, was EUR 54.7 million (EUR 60.6 million on December 31. 2010). Accounts and other payables, booked in interest-free current liabilities, were EUR 30.4 million (EUR 35.6 million on December 31. 2010). The amount of non-depreciated consolidation goodwill at the end of the period under review was EUR 19.2 million (EUR 18.5 million on December 31. 2010).

The amount of gross investments in the period under review was EUR 8.6 million consisting of replacement investments. Net investments for the reporting period totaled EUR 8.2 million. The total amount of depreciation during the period under review was EUR 7.0 million, including EUR 1.3 million of depreciation owing to business acquisitions.

The amount of interest-bearing debt at the end of the reporting period was EUR 9.2 million. The distribution of net financing expenses on the income statement was as follows:

interest dividend and other financial income EUR  0.2 million
interest expenses and other financial expenses EUR -0.4 million
foreign exchange gains and losses EUR -0.4 million

EB's equity ratio at the end of the period was 63.6% (62.4% at the end of 2010).

Cash and other liquid assets at the end of the reporting period were EUR 7.2 million. EB has a binding overdraft credit facility agreement of EUR 10 million, valid until mid 2012. At the end of the reporting period, this facility was not used.

EB follows a hedging strategy, the objective of which is to ensure the margins of business operations in changing market circumstances by minimizing the influence of exchange rates. In accordance with the hedging strategy, the agreed customer commitments net cash flow of the currency in question is hedged. The net cash flow is determined on the basis of sales receivables, payables, the order book and the budgeted net currency cash flow. The hedged foreign currency exposure at the end of the review period was equivalent to EUR 11.3 million.

PERSONNEL

EB employed an average of 1540 people between January and September 2011. At the end of September, EB had 1560 employees (1539 at the end of 2010). A significant part of EB's personnel are product development engineers. 

FLAGGING NOTIFICATIONS

There were no changes in ownership during the period under review that would have caused flagging notifications which are obligations for disclosure in accordance with Chapter 2, section 9 of the Securities Market Act.

Oulu, November 1, 2011

EB, Elektrobit Corporation

The Board of Directors

Further Information:

Jukka Harju

CEO

Tel. +358 40 344 5466

Distribution:

NASDAQ OMX Helsinki

Major media

EB, ELEKTROBIT CORPORATION,

CONDENSED FINANCIAL STATEMENTS AND NOTES JANUARY- SEPTEMBER 2011

(unaudited)

The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MEUR) 1-9/2011 1-9/2010 1-12/2010
  9 months 9 months 12 months
 


NET SALES 113.1 119.9 161.8
Other operating income 2.0 1.8 2.4
Change in work in progress and finished goods 0.4 0.3 -0.2
Work performed by the undertaking for its own purpose

and capitalized
0.1 0.2 0.2
Raw materials -8.6 -9.3 -15.4
Personnel expenses -70.0 -71.6 -97.7
Depreciation -7.0 -6.4 -8.5
Other operating expenses -37.5 -44.5 -59.8
OPERATING PROFIT (LOSS) -7.5 -9.7 -17.3
Financial income and expenses -0.7 -0.9 -1.3
RESULT BEFORE TAXES -8.2 -10.6 -18.6
Income taxes -0.0 0.3 2.9
RESULT FOR THE PERIOD FROM CONTINUING

OPERATIONS
-8.2 -10.2 -15.7
Other comprehensive income:


   Exchange differences on translating foreign operations -0.2 0.4 0.8
Other comprehensive income for the period total -0.2 0.4 0.8
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -8.4 -9.8 -14.9
 


Result for the period attributable to


  Equity holders of the parent -8.4 -10.6 -16.1
  Non-controlling interests 0.1 0.3 0.5




Total comprehensive income attributable to


  Equity holders of the parent -8.6 -10.1 -15.4
  Non-controlling interests 0.1 0.3 0.5
 


Earnings per share EUR continuing operations


  Basic earnings per share -0.06 -0.08 -0.12
  Diluted earnings per share -0.06 -0.08 -0.12
 


Average number of shares, 1000 pcs 129 413 129 413 129 413
Average number of shares, diluted, 1000 pcs 130 088 130 376 130 277




CONSOLIDATED STATEMENT OF FINANCIAL POSITION (MEUR) Sept. 30, 2011 Sept. 30,

2010
Dec. 31, 2010

     
ASSETS


Non-current assets


  Property, plant and equipment 8.4 10.6 10.5
  Goodwill 19.2 18.5 18.5
  Intangible assets 14.3 10.0 11.6
  Other financial assets 0.1 0.1 0.2
  Receivables
0.4 0.3
  Deferred tax assets 0.1 0.1 0.1
Non-current assets total 42.1 39.7 41.2
Current assets


  Inventories 2.1 2.9 1.9
  Trade and other receivables 54.7 53.1 60.6
  Financial assets at fair value through profit or loss
15.8 7.7
  Cash and short term deposits 7.2 15.0 12.9
Current assets total 64.0 86.8 83.0
TOTAL ASSETS 106.1 126.5 124.2

EQUITY AND LIABILITIES


Equity attributable to equity holders of the parent


  Share capital 12.9 12.9 12.9
  Invested non-restricted equity fund 38.7 38.7 38.7
  Translation difference 0.4 0.3 0.6
  Retained earnings 10.2 23.6 18.3
  Non-controlling interests 1.4 1.2 1.3
Total equity 63.6 76.7 71.8
Non-current liabilities


  Deferred tax liabilities 1.1 1.3 1.4
  Pension obligations 1.3 1.2 1.2
  Provisions 0.6 0.6 1.0
  Interest-bearing liabilities 4.3 8.9 8.0
Non-current liabilities total 7.3 11.9 11.6
Current liabilities


  Trade and other payables
29.1 32.0 33.3
  Financial liabilities at fair value through profit or loss
0.5

  Provisions
0.7 0.8 2.4
  Interest-bearing loans and borrowings
4.9 5.1 5.1
Current liabilities total
35.2 38.0 40.7
Total liabilities
42.5 49.9 52.4
TOTAL EQUITY AND LIABILITIES
106.1 126.5 124.2

CONSOLIDATED STATEMENT OF CASH FLOWS  (MEUR) 1-9/2011 1-9/2010 1-12/2010
  9 months 9 months 12 months
CASH FLOW FROM OPERATING ACTIVITIES
     
Result for the period -8.2 -10.2 -15.7
Adjustment of accrual basis items 4.8 17.0 17.5
Change in net working capital -1.4 3.7 3.5
Interest paid on operating activities -0.3 -2.9 -2.3
Interest received from operating activities 0.2 0.6 0.6
Other financial income and expenses, net received 0.0 0.0 0.0
Income taxes paid 3.1 -1.9 -2.2
NET CASH FROM OPERATING ACTIVITIES -1.8 6.3 1.5




CASH FLOW FROM INVESTING ACTIVITIES


Acquisition of business unit, net of cash acquired -0.8 -0.3 -0.3
Purchase of property, plant and equipment -1.2 -1.2 -1.7
Purchase of intangible assets -5.5 -3.7 -6.2
Purchase of other investments -0.0 -0.0 -0.0
Sale of property, plant and equipment 0.1 0.1 0.1
Sale of intangible assets
0.0 0.0
Proceeds from sale of investments 0.0 0.2 0.1
NET CASH FROM INVESTING ACTIVITIES -7.4 -5.0 -7.9




CASH FLOW FROM FINANCING ACTIVITIES



Proceeds from borrowing 0.2

Repayment of borrowing -2.2 -2.1 -2.8
Payment of finance liabilities -2.1 -2.6 -3.4
Distribution of funds from the share premium fund
-25.9 -25.9
NET CASH FROM FINANCING ACTIVITIES -4.1 -30.6 -32.1
 



NET CHANGE IN CASH AND CASH EQUIVALENTS -13.3 -29.2 -38.5
Cash and cash equivalents at beginning of period 20.5 59.1 59.1
Cash and cash equivalents at end of period 7.2 29.8 20.5

CONSOLIDATED STATEMENT OF

CHANGES IN  EQUITY  (MEUR)
           
             
A = Share capital            
B = Share premium            
C = Invested non-restricted equity fund            
D = Retained earnings            
E = Non-controlling interests            
F = Total equity            
             
  A B C D E F
             
Equity on January 1, 2010 12.9 64.6   34.9 0.4 112.8
  Distribution of funds from the share            
  premium fund   -25.9       -25.9
  Transfer from the share premium fund   -38.7 38.7     0.0
  Share-related compensation       0.5   0.5
  Total comprehensive income for the period       -10.1   -10.1
  Other items       -1.3 0.7 -0.6
Equity on September 30, 2010 12.9 0.0 38.7 23.9 1.2 76.7
             
Equity on January 1, 2011 12.9   38.7 19.6 1.3 72.5
  Share-related compensation       0.3   0.3
  Total comprehensive income for the period       -8.6   -8.6
  Other items       -0.7 0.1 -0.6
Equity on September 30, 2011 12.9   38.7 10.6 1.4 63.6

NOTES TO THE FINANCIAL STATEMENT BULLETIN

Accounting principles for the Financial Statement Bulletin:

The same accounting policies and methods of computation are followed in the financial statement bulletin as compared with annual financial statements.

Explanatory comments about the seasonality or cyclicality of reporting period operations:

The Company operates in business areas which are subject to seasonal fluctuations.

Prior period error

The current receivables have been corrected retrospectively. The correction applies to the tax asset of a foreign subsidiary. In the interim report, the corrections have been made to the reporting periods 3Q 2010 - 2Q 2011. The corrections decreases the current receivables by EUR 0.7 million and retaining earnings by EUR 0.7 million. The correction has no relevant effect on the exchange differences on translating foreign operations, net gearing, equity ratio or equity per share.

Payment of dividend:

The General Meeting held on March 31, 2011 decided in accordance with the proposal of the Board of Directors that no dividend shall be distributed. 

SEGMENT INFORMATION (MEUR)

OPERATING SEGMENTS  1-9/2011 1-9/2010 1-12/2010
  9 months 9 months 12 months




Automotive


  Net sales to external customers 70.2 57.0 80.1
  Net sales to other segments 0.0
0.0
  Net sales total 70.2 57.0 80.1




  Operating profit (loss) -1.3 0.8 1.9




Wireless


  Net sales to external customers 42.6 62.3 80.9
  Net sales to other segments 0.3 0.0 0.0
  Net sales total 42.9 62.4 81.0




  Operating profit (loss) -6.1 -10.4 -19.3




OTHER ITEMS


 


Other items


  Net sales to external customers 0.3 0.6 0.8
  Operating profit (loss) -0.1 0.0 0.1




Eliminations


  Net sales to other segments -0.3 -0.0 -0.0
  Operating profit (loss) 0.0 0.0 0.0




Group total


  Net sales to external customers 113.1 119.9 161.8
  Operating profit (loss) -7.5 -9.7 -17.3

Net sales of geographical areas (MEUR) 1-9/2011 1-9/2010 1-12/2010

9 months 9 months 12 months
Net sales


  Europe 87.6 70.2 96.8
  Americas 15.6 42.6 53.4
  Asia 10.0 7.2 11.6
Net sales total 113.1 119.9 161.8

Material events subsequent to the end of the interim period not reflected in the financial statements for the interim period:

There are no such material events subsequent to the end of the interim report period that have not been reflected in this report.

Related party transactions: 1-9/2011 1-9/2010 1-12/2010
Employee benefits for key management and stock

option expenses total
1.2 1.8 2.2

CONSOLIDATED STATEMENT OF 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
COMPREHENSIVE INCOME 2011 2011 2011 2010 2010
BY QUARTER (MEUR) 3 months 3 months 3 months 3 months 3 months






NET SALES 37.0 39.7 36.5 41.8 33.7
Other operating income 0.5 0.9 0.7 0.6 0.4
Change in work in progress and

finished goods
0.1 0.1 0.2 -0.5 0.2
Work performed by the undertaking

for its own purpose and capitalized
0.0 0.0 0.1 0.0 0.1
Raw materials -2.9 -3.0 -2.8 -6.1 -2.8
Personnel expenses -22.5 -23.3 -24.3 -26.1 -22.5
Depreciation -1.9 -2.7 -2.4 -2.1 -2.2
Other operating expenses -13.4 -12.2 -11.9 -15.3 -18.4
OPERATING PROFIT (LOSS) -3.1 -0.5 -3.9 -7.7 -11.5
Financial income and expenses 0.0 -0.3 -0.4 -0.3 0.9
RESULT BEFORE TAXES -3.1 -0.8 -4.3 -8.0 -10.6
Income taxes 0.0 -0.0 0.0 2.6 1.6
RESULT FOR THE PERIOD FROM

CONTINUING OPERATIONS
-3.1 -0.8 -4.3 -5.4 -9.0
Other comprehensive income




for the period total -0.1 -0.0 -0.0 0.3 -1.4
TOTAL COMPREHENSIVE




INCOME FOR THE PERIOD -3.2 -0.9 -4.4 -5.1 -10.4






Result for the period attributable to:




  Equity holders of the parent -3.1 -0.8 -4.4 -5.5 -9.0
  Non-controlling interests 0.0 0.0 0.1 0.1 0.0






Total comprehensive income




for the period attributable to:




  Equity holders of the parent -3.2 -0.9 -4.5 -5.2 -10.5
  Non-controlling interests 0.0 0.0 0.1 0.1 0.0
           
CONSOLIDATED STATEMENT OF Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
FINANCIAL POSITION (MEUR) 2011 2011 2011 2010 2010
 




ASSETS




Non-current assets




  Property, plant and equipment 8.4 9.2 9.8 10.5 10.6
  Goodwill 19.2 18.5 18.5 18.5 18.5
  Intangible assets 14.3 13.4 12.2 11.6 10.0
  Other financial assets 0.1 0.1 0.1 0.2 0.1
  Receivables 0.0 0.0 0.3 0.3 0.4
  Deferred tax assets 0.1 0.1 0.1 0.1 0.1
Non-current assets total 42.1 41.3 40.9 41.2 39.7
Current assets




  Inventories 2.1 2.2 1.6 1.9 2.9
  Trade and other receivables 54.7 47.0 52.2 60.6 53.1
  Financial assets at fair value 




  through profit or loss
0.0 6.2 7.7 15.8
  Cash and short term deposits 7.2 17.8 12.4 12.9 15.0
Current assets total 64.0 67.0 72.4 83.0 86.8
TOTAL ASSETS 106.1 108.3 113.4 124.2 126.5






EQUITY AND LIABILITIES




Equity attributable to equity holders




of the parent




  Share capital 12.9 12.9 12.9 12.9 12.9
  Invested non-restricted equity fund 38.7 38.7 38.7 38.7 38.7
  Translation difference 0.4 0.5 0.6 0.6 0.3
  Retained earnings 10.2 12.3 13.9 18.3 23.6
  Non-controlling interests 1.4 1.4 1.3 1.3 1.2
Total equity 63.6 65.9 67.5 71.8 76.7
Non-current liabilities




  Deferred tax liabilities 1.1 1.2 1.3 1.4 1.3
  Pension obligations 1.3 1.2 1.2 1.2 1.2
  Provisions 0.6 0.8 0.9 1.0 0.6
  Interest-bearing liabilities 4.3 5.9 7.2 8.0 8.9
Non-current liabilities total 7.3 9.1 10.6 11.6 11.9
Current liabilities




  Trade and other payables 29.1 27.6 29.0 33.3 32.0
  Financial liabilities at fair value  




  through profit or loss 0.5



  Provisions 0.7 0.7 2.0 2.4 0.8
  Interest-bearing loans and




  Borrowings (non-current) 4.9 5.0 4.3 5.1 5.1
Current liabilities total 35.2 33.3 35.3 40.7 38.0
Total liabilities 42.5 42.4 45.9 52.4 49.9
TOTAL EQUITY AND LIABILITIES 106.1 108.3 113.4 124.2 126.5

CONSOLIDATED STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
OF CASH FLOWS BY QUARTER 2011 2011 2011 2010 2010
  3 months 3 months 3 months 3 months 3 months






  Net cash from operating activities -6.6 3.4 1.4 -4.9 0.2
  Net cash from investing activities -2.3 -2.8 -2.3 -2.9 -2.6
  Net cash from financing activities
-1.7 -0.8 -1.6 -1.5 -27.8
Net change in cash and cash


equivalents
-10.6 -0.3 -2.4 -9.3 -30.1

FINANCIAL PERFORMANCE RELATED RATIOS 1-9/2011 1-9/2010 1-12/2010
  6 months 9 months 12 months
 


STATEMENT OF COMPREHENSIVE INCOME (MEUR)


Net sales 113.1 119.9 161.8
Operating profit (loss) -7.5 -9.7 -17.3
    Operating profit (loss), % of net sales -6.7 -8.0 -10.7
Result before taxes -8.2 -10.6 -18.6
    Result before taxes, % of net sales -7.3 -8.8 -11.5
Result for the period -8.2 -10.2 -15.7




PROFITABILITY AND OTHER KEY FIGURES


Interest-bearing net liabilities, (MEUR) 1.9 -15.9 -7.4
Net gearing, -% 3.0 -20.7 -10.3
Equity ratio, % 63.6 66.9 62.4
Gross investments, (MEUR) 8.6 7.0 10.7
Average personnel during the period 1540 1559 1561
Personnel at the period end 1560 1584 1539








AMOUNT OF SHARE ISSUE ADJUSTMENT Sept. 30, Sept. 30, Dec. 31,
(1,000 pcs) 2011 2010 2010
       
At the end of period 129 413 129 413 129 413
Average for the period 129 413 129 413 129 413
Average for the period diluted with stock options 130 088 130 376 130 277





STOCK-RELATED FINANCIAL RATIOS (EUR)
1-9/2011 1-9/2010 1-12/2010
  9 months 9 months 12 months
       
Basic earnings per share -0.06 -0.08 -0.12
Diluted earnings per share -0.06 -0.08 -0.12
Equity *) per share 0.48 0.58 0.54




  *) Equity attributable to equity holders of the parent







MARKET VALUES OF SHARES (EUR) 1-9/2011 1-9/2010 1-12/2010
  9 months 9 months 12 months
 


Highest 0.76 1.25 1.25
Lowest 0.44 0.83 0.66
Average 0.61 1.05 0.92
At the end of period 0.47 0.84 0.67




Market value of the stock, (MEUR) 60.8 108.7 86.7
Trading value of shares, (MEUR) 3.5 10.6 16.8
Number of shares traded, (1,000 pcs) 5 736 10 091 18 190
Related to average number of shares %
4.4 7.8 14.1
       
SECURITIES AND CONTINGENT LIABILITIES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2011 2010 2010
 


AGAINST OWN LIABILITIES


  Floating charges 11.4 3.1 3.1
  Pledges 8.5 2.4 2.3
 



Mortgages are pledged for liabilities totaled 4.3 6.5 6.3




AGAINST OTHER LIABILITIES


  Guarantees
2.6 4.5 2.0
  Other liabilities
10.0 10.1 10.1




OTHER DIRECT AND CONTINGENT LIABILITIES


Rental liabilities


   Falling due in the next year 6.2 5.6 6.0
   Falling due after one year 13.5 17.2 15.0
Other contractual liabilities


   Falling due in the next year 2.6 3.3 3.9
   Falling due after one year 1.8 0.3 2.1
       
NOMINAL VALUE OF CURRENCY DERIVATIVES Sept. 30, Sept. 30, Dec. 31,
(MEUR) 2011 2010 2010
 


Foreign exchange forward contracts



   Market value -0.4 0.7 -0.0
   Nominal value
7.0 12.0 11.0
 



Purchased currency options



   Market value
0.0 0.8 0.1
   Nominal value
4.3 8.0 5.0
 



Sold currency options



   Market value
-0.2 -0.5 -0.1
   Nominal value
8.6 16.0 10.0



This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Elektrobit Oyj via Thomson Reuters ONE

HUG#1559703
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