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Olvi Oyj

Quarterly Report Apr 24, 2008

3280_10-q_2008-04-24_21c39a8e-10ae-46f8-b535-c48927b8f9cb.pdf

Quarterly Report

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OLVI PLC PRESS RELEASE 24 APRIL 2008

OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2008 (3 MONTHS)

Olvi Group's net sales continued on a strong growth track but relative profitability declined. Olvi Group's net sales amounted to 45.8 (39.8) million euro. Operating profit for the period under review amounted to 3.2 (3.6) million euro. The Group's gross capital expenditure amounted to 8.7 (4.8) million euro, and its equity to total assets ratio stood at 47.7 percent (48.9%). Earnings per share amounted to 0.22 (0.26) euro.

OLVI GROUP'S KEY INDICATORS

Change
1-3/2008 1-3/2007 % 1-12/2007
Net
sales,
MEUR
45.8 39.8 +
15.2
205.2
Operating
profit,
MEUR
3.2 3.6 -
13.2
23.1
Gross
capital
expenditure,
MEUR
8.7
4.8 +
81.3
25.4
Earnings
per
share,
EUR
0.22 0.26 1.83
Equity
per
share,
EUR
8.83 7.71 8.61
Equity
to
total
assets,
%
47.7 48.9 47.7
Gearing,
%
52.3 52.7 45.6

SALES VOLUME, NET SALES AND EARNINGS

Olvi Group

Olvi Group's sales in the first quarter of 2008 increased to 73 (67) million litres. This represents an increase of 6 million litres or 8.5 percent on the previous year. The sales improvement in Finland was 21.3 percent and in the Baltic states 6.2 percent.

The Group's net sales from January to March amounted to 45.8 (39.8) million euro. This represents an increase of 6.0 million euro or 15.2 percent on the previous year. Net sales in Finland amounted to 23.3 (19.3) million euro and aggregate net sales in the Baltic states to 25.8 (22.4) million euro, an increase of 3.4 million euro. Net sales in Finland increased by 20.9 percent in the first quarter, while net sales in the Baltic states increased by 15.1 percent. The net sales increase in the Baltic states clearly outperformed the increase in sales volume.

Olvi Group's net sales in the first quarter amounted to 3.2 (3.6) million euro. Operating profit came to 6.9 (9.2) percent of net sales. The aggregate operating profit of the units in the Baltic states was on a par with the previous year, while the parent company Olvi plc's profit fell short of the previous year.

In the period under review, earnings after taxes stood at 2.3 (2.7) million euro. Earnings per share calculated from the profit belonging to parent company shareholders in the first quarter of 2008 stood at 0.22 (0.26) euro per share.

Owing to the seasonal character of the brewing industry, the majority of the fullyear net sales and operating profit is made during the second and third quarters.

Parent company Olvi plc

The parent company Olvi plc's sales improved substantially in the first quarter. Sales from January to March amounted to 32 (27) million litres, representing an increase of 6 million litres or 21.3 percent.

Factors affecting the growth included a clear increase in Olvi plc's market share in beers, as well as a large number of new products. In terms of litres sold, the greatest increase was seen in beers, while proportional growth was greatest in long drinks. According to sales monitoring by the Federation of the Brewing and Soft Drinks Industry, Olvi plc's overall market position in the main product

groups was 22.6% in the period under review.

The parent company's net sales from January to March amounted to 23.3 (19.3) million euro, representing an increase of 4.0 million euro or 20.9 percent on the previous year.

Operating profit for the first quarter of the year, January to March, stood at 1.0 (1.5) million euro or 4.2 (8.0) percent of net sales. Operating profit fell short of the previous year's level due to increased costs of raw materials and packaging supplies, which could not be transferred to product prices in full during the first quarter. Furthermore, the packaging reform concerning the entire industry, which involves a transition from refillable plastic bottles to single-use recyclable plastic bottles, has been substantially slower than planned across the entire industry, which causes additional logistics costs. In addition, total consumption in March, which is the most important month of the first quarter, fell substantially short of the previous year.

Scrapping of the obsolete package inventory resulted in 0.2 (0.4) million euro of write-downs on inventories that burdened the January-March earnings.

AS A. Le Coq

The Estonian subsidiary AS A. Le Coq's first-quarter sales were on a par with the previous year at 28 (28) million litres.

In terms of litres sold, the greatest increase was seen in beers, while proportional growth was greatest in ciders. However, the sales of mineral waters, well-being beverages and long drinks declined somewhat on the previous year.

A. Le Coq's net sales growth in January-March outperformed the growth in sales volume. Net sales in the first quarter totalled 15.3 (14.0) million euro, representing an increase of 1.3 million euro or 9.3 percent.

Operating profit in January-March stood at 2.1 (1.8) million euro, which was 13.5 (12.6) percent of net sales. The operating profit increased by 0.3 million euro or 17.0 percent compared to the previous year.

A/S Cesu Alus

The sales of A/S Cesu Alus operating in Latvia continued on a strong growth track also in the first quarter of 2008. Sales in January-March increased by almost 3 million litres to 12 (9) million litres, an increase of 25.9 percent.

In terms of volume, the greatest growth was seen in beers, while proportional growth was greatest in mineral waters and ciders.

A/S Cesu Alus's net sales growth in January-March outperformed the growth in sales volume. Net sales in the first quarter increased to 6.0 (4.3) million euro, representing an increase of 1.7 million euro or 38.3 percent.

Operating profit in January—March was on a par with the previous year at 0.1 (0.1) million euro.

AB Ragutis

The first-quarter sales of AB Ragutis operating in Lithuania were approximately on a par with the previous year at 8 (8) million litres.

However, the net sales of AB Ragutis increased in the first quarter. Net sales in January-March increased by 10.3 percent to 4.5 (4.1) million euro, an increase of 0.4 million euro.

AB Ragutis's operating profit for the first quarter stood at -0.1 (0.2) million

euro, a difference of -0.3 million euro compared to the previous year.

FINANCING AND INVESTMENTS

Olvi Group's balance sheet total at the end of March 2008 was 194.1 (163.7) million euro. Equity per share in January-March stood at 8.83 (7.71) euro. The equity to total assets ratio, 47.1 (48.9) percent, declined slightly on the previous year. The amount of interest-bearing liabilities was 49.4 (44.4) million euro, including current liabilities of 20.8 (19.5) million euro.

During the period under review, Olvi Group's gross capital expenditure amounted to 8.7 (4.8) million euro. The parent company Olvi plc accounted for 3.7 million euro and the subsidiaries in the Baltic states for 5.0 million euro of the total. The largest investments in Finland in 2008 will include Olvi plc's automatic product storage facility, a new canning line and multi-packaging equipment for the new recyclable plastic bottles. The largest investments in the Baltic states include a canning line and storage extension at A/S Cesu Alus, as well as a plastic bottle filling line and a fermentation cellar extension at Ragutis.

The gross capital expenditure also includes purchases made on finance lease.

PRODUCT DEVELOPMENT

Research and development includes projects to design and develop new products, packages, processes and production methods, as well as further development of existing products and packages. The R&D costs have been recognised as expenses.

NEW PRODUCTS

Olvi plc has introduced plenty of new products to the market during the entire first quarter. The main themes include Olvi's 130th anniversary, well-being and health.

The Olvi 130th Anniversary beer was introduced in 0.5 L cans and in six-packs of 0.33 L bottles. The beer has received positive feedback from beer critics and the media.

The FIZZ product family was expanded with four new flavours: Fizz Cooler Red Berries and Fizz Cooler Pineapple&Citrus in 0.5 L cans, as well as Fizz Fresh Perry and Fizz Fresh Apple Light in 0.5 L bottles. In addition to these, both Coolers are available in six-packs of 0.33 L cans. The Cooler cans are embossed all around the circumference, 360 degrees. The surface emphasises the freshness of the product, increasing its attractiveness and shelf impact at retail outlets.

OLVI Greippi-Lonkero was introduced in a completely new size of package, a 0.95 litre recyclable plastic deposit bottle. OLVI Greippi-Lonkero was complemented with Olvi Kultalonkero (Gold Long Drink) in cans and six-packs of cans. The gold colour is visible on the package as well as in the actual beverage. The product has already gained good distribution coverage.

Olvi expanded the KevytOlo product family with two new well-being beverages. KevytOlo Piristävä (Energising) tastes of citrus fruit, while KevytOlo for weight management has a forest berry flavour. Well-being beverages are a strongly growing segment because healthiness and comprehensive well-being are important for consumers.

Olvi also launched the juice-mineral water KevytOlo Sitruuna (Lemon). The product combines the refreshing character and ease of drinking of mineral water with the naturalness and healthiness of juices.

KevytOlo Vadelma Kalsium (Raspberry Calcium) is targeted at people who need to increase their calcium intake. The classic product OLVI Vichy was complemented with a lemon-flavoured variant OLVI Vichy Sitruuna. Lemon is a classic taste of flavoured mineral waters.

The TEHO energy drink was launched in new recyclable plastic bottles in addition to cans. The number of competitors in the bottle market for energy drinks is smaller than in the can market. The bottle was chosen to be of non-transparent yellow plastic to emphasise performance and maximise the shelf visibility of the product.

In January 2008, Olvi plc signed a licencing agreement with Warner Bros. Consumer Products Inc. that entitles Olvi plc to manufacture, sell and distribute Batman soft drinks in Finland. Batman Cola regular and light will be packaged in 0.5 L and 1.5 L recyclable plastic deposit bottles.

Baltic states

A.Le Coq, the largest manufacturer of beverages in Estonia, entered the juice concentrate product group. Concentrated juices were launched in four different flavours and contain real juice. A.Le Coq, which is already the market leader in juices, is aiming at a 15% share of the Estonian concentrated juice market by the end of the year. In terms of ready-mixed beverage, the overall market in Estonia is some 17 – 19 million litres.

The Aura juice brand was expanded to juice-mineral waters with the Aura Spritzer products, two variants of lemon and apple juice plus mineral water. Grapefruit was introduced to regular Aura juices.

A.Le Coq is the Estonian market leader in long drinks. The A.Le Coq GIN Long Drink product family was expanded with Mohito, which honours the original recipe of the traditional cocktail.

The energy drink Dynamite launched in Estonia a year ago was complemented by the Dynamite Red Energy product. It is expected to increase Dynamite's share of the Estonian energy drink market to 25 percent.

FIZZ Original Dry, which is the best selling dry cider in Finland, was also launched in Estonia. The dry cider market in Estonia is still in its infancy. It was natural that FIZZ, the market leader in ciders in Estonia, took the initiative.

Cesu Alus, which is the second largest and the most rapidly growing brewery in Latvia, introduced several new products to the market in the first quarter. Aqua Plus is a range of functional beverages of the "near water" type. Among other ingredients, the products contain L-carnitine and vitamins. There are three flavour variants: raspberry, green apple and rhubarb-aloe vera, as well as a separate grapefruit-flavoured product Aqua Plus Sport for athletes. The FIZZ cider EUDQG ZDV H[SDQGHG ZLWK FKHUU\ & VX 'åLQV ZKLFK LV WKH EHVW VHOOLQJ PLOG DOFRKRO mixed drink (long drink) in Latvia, was expanded with a new mandarin-lime flavour.

Ragutis, the third-largest brewery in Lithuania, brought Aura Spritzer and Dynamite Red Energy from Estonia to the Lithuanian market. It also launched two new beers: Fortas Pilsner 4.7% and Fortas Nefiltruotas 5.0%, the latter being nonfiltered.

PERSONNEL

Olvi Group's average number of personnel in January-March was 1,235 (1,142), 423 (343) of them in Finland, 394 (401) in Estonia, 219 (201) in Latvia and 198 (197) in Lithuania. The average number of personnel increased by 93 people or 8.1 percent on the previous year. The total number of personnel at the end of March was 1,257 (1,165).

GROUP STRUCTURE

At the end of March 2008, Olvi Group's holding in AS A. Le Coq was 100 percent, in A/S Cesu Alus 97.89 percent and in AB Ragutis 99.57 percent.

RESOLUTIONS OF ANNUAL GENERAL MEETING 10 APRIL 2008

At their Annual General Meeting held on 10 April 2008, the shareholders of Olvi plc adopted the closing of the accounts for the year 2007 and granted discharge from liability to the members of the Board of Directors and Managing Director as regards the fiscal year 2007.

In accordance with the Board's proposal, the General Meeting of Shareholders decided that a dividend of 0.80 euro be paid on each K and A share for fiscal 2007. The dividend according to the decision represented 43.7 percent of earnings per share. The dividend payout totalled 8.3 million euro. The dividend was paid on 22 April 2008 to all shareholders recorded in the company's register of shareholders maintained by the Finnish Central Securities Depository Ltd on the record date 15 April 2008 at the latest. The payment of dividends will expire on 22 April 2013.

Board members and auditors

The Annual General Meeting re-elected the members of the Board who were in office in 2007: Mr. Heikki Hortling, Chairman of the Board, M.Sc. (Econ), Iisalmi, Mr. Esa Lager, CFO, LL.M., M.Sc. (Econ), Kauniainen, Mr. Lauri Ratia, Managing Director, M.Sc. (Eng), Helsinki, Mr. Heikki Sinnemaa, LL.M., Member of the Bar, Iisalmi, and Mr. Harri Sivula, Managing Director, M.Adm.Sc., Tuusula.

The Annual General Meeting appointed PricewaterhouseCoopers Ltd, Authorised Public Accountants, as the company's auditor, with Mr. Pekka Loikkanen, Authorised Public Accountant, Kuopio, as the auditor in charge. Ms. Silja Komulainen, Authorised Public Accountant, Sotkamo, was elected deputy auditor.

Organisation of the Board of Directors

At its organising meeting held on 10 April 2008, the Board elected Mr. Heikki Hortling as the Chairman of the Board and Mr. Esa Lager as the Vice Chairman of the Board.

Decision regarding the acquisition of own A shares

In accordance with the Board of Directors' proposal, the Annual General Meeting decided to revoke all existing unused authorisations to acquire treasury shares and authorise the Board of Directors to decide on the acquisition of the company's own Series A shares using distributable funds. The authorisation is valid for one year starting from the Annual General Meeting and covers a maximum of 245,000 Series A shares. The Board of Directors may also decide that any shares acquired on the company's own account be cancelled by reducing the share capital.

The authorisation allows the Board of Directors to acquire the company's own shares for use as consideration in case of any upcoming corporate acquisitions, for the funding of investments, for the incentive and commitment scheme for key personnel or for cancellation.

Decision regarding the transfer of own shares

In accordance with the Board of Directors' proposal, the Annual General Meeting decided to revoke all existing unused authorisations for the transfer of own shares and authorise the Board of Directors to decide on the transfer of any A shares acquired on the company's own account within one year of the Annual General Meeting. The authorisation comprises the transfer of all shares purchased on the basis of acquisition authorisations granted to the Board of Directors.

The authorisation grants the Board of Directors with the power to decide to whom and in what order the shares held by the company shall be transferred. The Board of Directors could transfer the company's own shares for use as consideration in case of any upcoming corporate acquisitions, for the funding of investments or for use within an incentive and commitment scheme for key personnel. The Board of Directors is authorised to decide on the transfer price of the company's own shares and on the bases for determining the transfer price.

BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM

The present refillable bottle stock will probably be completely phased out step by step before the year 2010. This will result in increased non-marketability writedowns on inventories within the next few years.

As the consumption of beers, ciders and long drinks is increasingly moving to canned products, the costs of production, raw materials and packaging will increase in comparison to bottled products, resulting in more intense price competition.

The prices of raw materials and packaging supplies, as well as the costs of energy and logistics will increase substantially in 2008. This will impose a great challenge to optimise the product range and to transfer the cost increases to product sales prices.

It is still difficult to recruit skilled and committed personnel in the Baltic states. Personnel costs and the costs of the most important raw materials and packaging supplies have increased substantially, which together with price increases on power and fuels imposes a pressure for increasing product prices.

The inflation rate in the Baltic states has accelerated and uncertainty in the economy has increased, due to which the economic trend in the Baltic states is under intense supervision.

NEAR-TERM OUTLOOK

The overall market position of Olvi Group companies has strengthened both in Finland and in the Baltic states. Substantial investments ensure the sufficiency of capacity supporting our growth and cost-efficient production of versatile product ranges and alternative packages. Further improvement of the entire Olvi Group's profitability and competitive ability is a crucial target. Olvi plc is more intensively seeking growth also outside Finland.

We expect Olvi Group's net sales to increase and operating profit to improve slightly on the previous year.

Further information:

Lasse Aho, Managing Director Phone +358 17 838 5200 or +358 400 203 600

OLVI PLC Board of Directors

APPENDICES

  • Balance sheet, Appendix 1
  • Income statement, Appendix 2
  • Changes in shareholders' equity, Appendix 3
  • Cash flow statement, Appendix 4
  • Notes to the interim report, Appendix 5

DISTRIBUTION OMX Nordic Exchange, Helsinki Key media www.olvi.fi

OLVI GROUP

BALANCE SHEET EUR 1,000

31
Mar
2008
31
Mar
2007
31
Dec
2007
ASSETS
Non-current
assets
Tangible
assets
102,950 85,677 97,706
Goodwill 10,679 10,675 10,679
Other
intangible
assets
884 1,510 1,002
Financial
assets
available
for
285 254 285
sale
Other
non-current
assets
5 307 63
available
for
sale
Loan
receivables
and
other
non
current
receivables
119 44 480
Deferred
tax
receivables
359 90 0
Total
non-current
assets
115,281 98,558 110,215
Current
assets
Inventories 35,486 28,793 30,159
Accounts
receivable
and
other
39,561 34,115 42,181
receivables
Deferred
tax
receivables
117 110
Liquid
assets
1,529 2,184 4,332
Total
current
assets
76,693 65,092 76,782
TOTAL
ASSETS
191,974 163,650 186,997
SHAREHOLDERS'
EQUITY
AND
LIABILITIES
Shareholders'
equity
held
by
parent
company shareholders
Share
capital
20,759 20,759 20,759
Other
reserves
1,092 1,127 1,092
Treasury
shares
-722 -290 -722
Retained
earnings
67,943 55,608 48,979
Net
profit
for
the
period
2,317 2,722 18,944
91,389 79,926 89,052
Minority
interest
131 98 136
Total
shareholders'
equity
91,520 80,024 89,188
Non-current
liabilities
Interest-bearing
liabilities
28,140 24,652 28,592
Interest-free
liabilities
0 712 0
Deferred
tax
liabilities
1,030 1,328 1,113
Current
liabilities
Interest-bearing
liabilities
21,212 19,717 16,383
Accounts
payable
and
other
50,072 37,217 51,721
liabilities
Total
liabilities
100,454 83,626 97,809
TOTAL
SHAREHOLDERS'
EQUITY
AND
LIABILITIES
191,974 163,650 186,997

OLVI GROUP INCOME STATEMENT EUR 1,000

2008

1-3/2008 1-3/2007 1-12/2007
Net
sales
45800 39750 205188
Other
operating
income 287 253 894
Operating
expenses
-39600 -33510 -171222
Depreciation
and
impairment -3325 -2851 -11759
Operating
profit
3162 3642 23101
Financial
income
35 20 186
Financial
expenses
-582 -399 -1953
Earnings
before
tax
2615 3263 21334
Taxes
*)
-303 -543 -2354
Net
profit
for
the
period 2312 2720 18980
Distribution:
-
parent
company
shareholders 2317 2722 18944
-
minority
-5 -2 36
Ratios
calculated
from the profit belonging
to
parent
company
shareholders:
-
earnings
per
share, euro 0.22 0.26 1.83
*)
Taxes
calculated
period.
from the profit for the review
OLVI
GROUP
CHANGES
IN
CONSOLIDATED
SHAREHOLDERS' EQUITY
EUR 1,000
A
B C D E F G H I
Shareholders'
20759
equity 1 Jan
857 127 -290 143 -18 55688 101 77367
2007
Translation
-64 -1 -65
differences
Net profit for the 2722 2722
period
Change in minority interest
2 -2 0
Shareholders'
20759
equity 31 Mar
2007
857 127 -290 143 -82 58412 98 80024
EUR 1,000
A
B C D E F G H I
Shareholders'
20759
equity 1 Jan
857 127 -722 108 -9 67932 136 89188
2008
Translation
19 19
differences
Net profit for the
2313 2313
period
Share of profit belonging to the
5 -5 0
minority
Shareholders'
20759
equity 31 Mar
857 127 -722 108 10 70250 131 91520
A = Share
capital
B = Share
premium
account
C = Legal
reserve
D = Treasury
shares
reserve
E = Other
reserves
F = Translation
differences
G = Retained
earnings
H = Minority
interest
I = Total

OLVI GROUP

CASH FLOW STATEMENT EUR 1,000

1-3/2008 1-3/2007 1-12/2007
Net
profit
for
the
period
2313 2722 18980
Adjustments
to
profit
for
the
period
4179 3912 15542
Change
in
net
working
capital
-4390 -6765 -1597
Interest
paid
-298 -276 -1806
Interest
received
35 20 72
Taxes
paid
-641 -416 -3307
Cash
flow
from
operations
(A)
1198 -803 27884
Capital
expenditure
-8392 -4921 -25140
Disposals
of
fixed
assets
14 4 308
Cash
flow
from
investments(B)
-8378 -4917 -24832
Withdrawals
of
loans
7706 8000 16000
Repayments
of
loans
-3329 -2200 -9665
Acquisition
of
treasury
shares
-432
Dividends
paid
0 0 -6725
Cash
flow
from
financing
(C)
4377 5800 -822
Increase
(+)/decrease
(-)
in
liquid
assets
(A+B+C)
-2803 82 2230
Liquid
assets
1
January
4332 2102 2102
Liquid
assets
31
Mar/31
Dec
1529 2184 4332
Change
in
liquid
assets
-2803 82 2230

OLVI GROUP

NOTES TO THE INTERIM REPORT

The accounting policies used for the preparation of this interim report are the same as those used for the annual financial statements 2007.

The Group has adopted the interpretation IFRIC 11, Group and Treasury Share Transactions. The Group's management does not expect this new interpretation to have any effect on upcoming interim reports or financial statements.

  1. SEGMENT INFORMATION SALES BY GEOGRAPHICAL SEGMENT (1,000 litres) 1-3/2008 1-3/2007 1-12/2007
Olvi
Group
total
72958 67216 341765
Finland 32408 26714 137586
Estonia 28176 27718 138163
Latvia 11710 9302 54124
Lithuania 8316 8356 42778
-
sales
between
segments
-7652 -4874 -30886

NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)

1-3/2008 1-3/2007 1-12/2007
Olvi
Group
total
45800 39750 205188
Finland 23319 19280 96546
Estonia
*)
15301 13999 72494
Latvia 5986 4328 26686
Lithuania 4541 4118 22069
-
sales
between
segments
-3347 -1975 -12607

OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)

1-3/2008 1-3/2007 1-12/2007
Olvi
Group
total
3162 3642 23101
Finland 974 1540 8514
Estonia 2064 1765 10838
Latvia 113 115 2294
Lithuania -115 162 1553
-
eliminations
126 60 -98
2.
PERSONNEL
ON
AVERAGE
1-3/2008 1-3/2007 1-12/2007
Finland 423 343 389
Estonia 394 401 409
Latvia 219 201 211
Lithuania 198 197 202
Total 1234 1142 1211

3. RELATED PARTY TRANSACTIONS

Employee benefits to management Salaries and other short-term employee benefits to the Board of Directors and Managing Director.

EUR 1,000

1-3/2008 1-3/2007 1-12/2007
Managing
Directors
299 237 577
Chairman
of
the
Board
52 49 203
Other
members
of
the
Board
29 23 106
Total 380 309 886
4.
SHARES
AND
SHARE
CAPITAL
31
Mar
2008
Number of A
shares
8513276
Number of K
shares
1866128
Total 10379404
Total
votes
carried
by
A
shares
8513276
Total
votes
carried
by
K
shares
37322560
Total
number
of
votes
45835836
Registered
share
capital,
EUR
1,000
20759

The General Meeting of Shareholders on 10 April 2008 decided to pay a dividend of 0.80 euro per share on each A and K share for 2007 (0.65 euro for 2006), totalling 8.3 (6.7) million euro. The dividends were paid on 22 April 2008.

Nominal value of A and K shares, euro 2.00
Votes per Series A share 1
Votes per Series K share 20

The shares entitle to equal dividend. The Articles of Association include a redemption clause concerning Series K shares.

5. TREASURY SHARES

On the basis of authorisations granted by General Meetings of Shareholders, the company's Board of Directors has in 2006 and 2007 acquired a total of 32,000 of the company's own Series A shares for an aggregate purchase price of 722 thousand euro.

The Board of Directors has not exercised the authorisation granted by the General Meeting to transfer the company's own Series A shares during January-March 2008. All of the treasury shares acquired are in the company's possession at the end of the review period.

Series A shares held by Olvi plc as treasury shares represent 0.31 percent of the share capital and 0.07 percent of the aggregate number of votes. The acquired shares represent 0.38 percent of all Series A shares and associated votes.

  1. NUMBER OF SHARES *)
1-3/2008 1-3/2007 1-12/2007
-
average
10347404 10363404 10358296
-
at
end
of
period
10347404 10363404 10347404

*) Acquired treasury shares deducted.

7.
TRADING
OF
SERIES
A
SHARES
ON
THE
HELSINKI
STOCK
EXCHANGE
1-3/2008 1-3/2007 1-12/2007
Olvi
A
shares
traded
in
1-3/2008
580945 867682 2286279
Total
trading
volume,
EUR
1,000
14114 18715 55328
Traded
shares
in
proportion
to
all
Series
A
shares,
%
6.8 10.2 26.9
Average
share
price,
EUR
23.88 21.55 24.14
Price
on
the
closing
date,
EUR
26.10 22.66 24.00
Highest
quote,
EUR
26.55 25.50 30.80
Lowest
quote,
EUR
20.00 19.50 19.50
  1. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2008
Number
of
Number
of
Number
of
-------------- ------------------------------
Finnish
total
Foreign
total
Nominee-reg.(foreign)
total
Nominee-reg.(Finnish)
total
Total
book
entries
8319337
272886
1170
1786011
10379404
%
80.15
2.63
0.01
17.21
100.00
votes
42804033
1244622
1170
1786011
45835836
%
93.39
2.72
0.00
3.90
100.00
shareholders
5869
25
2
7
5903
9.
LARGEST
SHAREHOLDERS
ON
31
MARCH
2008
Series K
Series
A
Total
% Votes %
1.
Olvi
Foundation
2.
Hortling
Heikki
W)
3.
Heirs
of
Hortling
K.E
4.
Hortling
Timo
Einari
5.
Hortling-Rinne
Marit
6.
Skandinaviska
Enskilda
Banken
nominee
register
7.
Nordea
Bank
Finland
plc,
nominee
register
8.
Ilmarinen
Mutual
Pension
9.
Autocarrera
Oy
Ab
10.
Veritas
Pension
Insurance
Others
Total
)
The
figures
include
the
1181952
450712
93552
82912
51144
Insur.
Co.
5856
5424836
1866128
8513276
shareholder's
354408
85380
12624
17304
1050
981293
690742
515748
221891
208000
10379404
own
holdings
1536360
14.80
536092
5.16
106176
1.02
100216
0.97
52194
0.50
981293
9.45
690742
6.65
515748
4.97
221891
2.14
208000
2.00
5430692
52.32
100.00
and
23993448
9099620
1883664
1675544
1023930
981293
690742
515748
221891
208000
5541956
45835836
shares
held
by
52.35
19.85
4.11
3.66
2.23
2.14
1.51
1.13
0.48
0.45
12.09
100.00
parties
in
his
control.
10.
PROPERTY,
PLANT
AND
EUR
1,000
EQUIPMENT
1-3/2008 1-3/2007
Increases
Decreases
Total
8576
-81
8495
4701
-126
4575
11.
CONTINGENT
LIABILITIES
31 Mar
2008
31
Mar
2007*)
31
Dec
2007
Pledges
and
contingent
For
own
commitments
For
others
liabilities
1134
0
1135
1055
1134
0
Leasing
liabilities:
Due
within
one
year
Due
within
1
to
5
years
Due
in
more
than
5
years
Total
leasing
liabilities
765
850
1615
1086
1074
1
2161
882
1101
5
1988
Package
liabilities
Other
liabilities
4943
1980
5468
1980
4604
1980
Debts
for
which
mortgages
have
Loans
from
financial
institutions
For
own
commitments
been
given
0
as collateral
1545
0
For
others
0 763 0

*) The comparison data for 2007 has been adjusted.

12. CALCULATION OF FINANCIAL RATIOS

Equity to total assets, % = Shareholders' equity held by parent company shareholders + minority interest/100 * balance sheet total – advances received

Earnings per share = Profit belonging to parent company shareholders / Average number of shares during the period, adjusted for share issues

Equity per share = Shareholders' equity held by parent company shareholders / Number of shares at end of period, adjusted for share issues

Gearing, % = Interest-bearing debt – cash in hand and at bank / Shareholders' equity held by parent company shareholders + minority interest

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