Tecnotree Oyj — Interim / Quarterly Report 2012

Apr 27, 2012

Tecnotree Corporation Interim Report Q1/2012

April 27, 2012

Tecnotree Group in Brief

Highlights for Q1 / 2012 (comparisons to Q1 2011)

• High order backlog of 36.2 M€ plus a new order worth 18 MEUR received in April (22.1 M€ in Q1 2011)
• New record for order backlog
• 30.5 MUSD order received from Latin America in December 2011
• 24 MUSD (18 MEUR) order in April 2012
• These orders are evidence of the implementation of the new strategy of Tecnotree

Net sales in Q1 were 10.0 M€ (10.6 M€)

• The 30.5 MUSD project started but only 1.4 MUSD of revenue was recoginized in Q1
• Q1 is typically a low revenue and order quarter for Tecnotree
• Due to investment budget practices, some big customers start making orders only in from Q2 onwards

Tecnotree maintains its prospects for 2012

• Higher net sales than in 2011
• Positive adjusted operating result
• Improved cash flow after investments

Financial Highlights

M€	1‒3/2012	1‒3/2011
Net sales	10.0	10.6
Adjusted operating result EBIT BEFORE R&D CAPITALISATION & AMORTISATION AND ONE-TIME COSTS	-5.8	-4.9
Ebit	-7.2	-8.3
Net result	-8.8	-8.1
Order intake	5.8	18.4
Cash flow after investments	0.3	-6.7
Net Cash Flow	-0.7	-3.7
Cash	6.0	12.8
Equity Ratio	48.6	61.3
Net Gearing	50.9	13.7

Sales and Orders

Net Sales by Area

Americas +118% ‒ Europe -30% ‒ MEA -42% ‒ APAC +175%

Adjusted Income Statement

EUR Million	1-3/2012	1-3/2011	Change %
Net sales	10.0	10.6	-5.5
Other operating income	0.0	0.0
Total revenue	10.0	10.6	-5.5
Adjusted operating expenses *)	-15.8	-15.5	2.0
Adjusted operating result	-5.8	-4.9	18.1
- Net impact of R&D capitalizations	-1.4	-1.8	-18.8
- One-time costs		-1.6
Operating result	-7.2	-8.3	12.5

*) Operating expenses less the net impact of the R&D capitalisations and one-time costs

Consolidated Balance Sheet

EUR Million	31.3.2012	31.3.2011	Change %
NON-CURRENT ASSETS
Fixed Assets	14.1	22.3	-36.5
Consolidated goodwill	19.4	20.6	-5.9
Other non-current assets	1.8	3.2	-43.0
CURRENT ASSETS
Inventories	0.6	1.1	-44.7
Trade Receivables	18.1	19.4	-6.8
Other Receivables	26.3	19.7	33.4
Investments	0.0	1.5
Cash and Cash Equivalents	6.0	12.8	-53.1
TOTAL ASSETS	86.3	100.6	-14.2

Consolidated Balance Sheet

EUR Million	31.3.2012	31.3.2011	Change %
SHAREHOLDER'S EQUITY	41.3	61.2	-32.6
Interest-bearing liabilities	12.2	14.5	-15.6
Deferred tax liabilities	3.3	2.8	15.6
Other non-current liabilities	0.4	0.4	-6.4
CURRENT LIABILITIES
Interest-bearing liabilities	14.8	8.2	80.1
Non-interest-bearing liabilities	14.3	13.4	7.1
EQUITY AND LIABILITIES	86.3	100.6	-14.2

Prospects for 2012

• Tecnotree estimates that net sales and the operating result in 2012 will be better than in 2011.
• The adjusted operating result is estimated to be positive.
• Variations in the quarterly figures will be considerable.
• The cash flow after investments is also expected to improve compared to 2011.
• The adjusted operating result is the operating result before R&D capitalization, amortization of this and onetime costs.

ADDITIONAL FINANCIAL INFORMATION FOR INVESTORS

Sales and Adjusted Operating Result

Adjusted operating result = Ebit before R&D capitalisation & amortisation and one-time costs

Consolidated Income Statement

EUR Million	1-3/2012	1-3/2011	Change %
Net sales	10.0	10.6	-5.5
Other operating income	0.0	0.0
Materials and services	-1.9	-1.7	12.2
Employee benefit expenses	-7.8	-8.4	-8.1
Depreciation	-2.0	-2.6	-23.9
Other operating expenses	-5.6	-6.1	-8.5
Operating result	-7.2	-8.3	12.5
Financial income and expenses	-0.7	0.5
Result after financial income and expenses	-8.0	-7.8	-1.8
Income taxes	-0.9	-0.2
Result for the period	-8.8	-8.1	-9.6

Sales by Area Americas

Sales by Area APAC

Sales by Area Europe

Sales by Area MEA

Sales Distribution

Materials and Services

Employee Benefits

Other Operating Expenses

Assets by Quarter

Equity and Liabilities by Quarter