Wulff Group Plc’s Financial Statements for January 1 – December 31, 2011

FINANCIAL STATEMENTS RELEASE       February 8, 2012 at 9:00 A.M.

WULFF GROUP PLC’S FINANCIAL STATEMENTS FOR JANUARY 1 – DECEMBER 31, 2011

Net Sales and Result Improvement Increased the Dividend

  • In 2011, the Group’s net sales increased by 6.5 percentages and totalled EUR 99.1 million (EUR 93.1 million).The last quarter’s net sales were EUR 27.5 million (EUR 27.1 million). The year’s positive development is backed with the sales operations development activities, good performance in customer service and the efficiency improvement initiatives managed successfully.
  • The whole year’s EBITDA increased by 71 percentages up to EUR 2.69 million (EUR 1.58 million) in 2011. EBITDA was 2.7 percentages (1.7 %) of the net sales. In the last quarter, EBITDA was 3.9 percentages (4.7 %) of the net sales and totalled EUR 1.08 million (EUR 1.28 million).
  • In 2011, the operating profit of EUR 1.60 million was clearly better than in 2010 (EUR 0.04 million). Operating profit margin was 1.6 percentages (0.00 %). The last quarter’s operating profit was EUR 0.79 million (EUR 0.90 million) being 2.9 percentages (3.3 %) of the net sales.
  • The net profit totalled EUR 0.82 million (EUR -0.42 million) for the whole year and EUR 0.56 million (EUR 0.35 million) in the last quarter.
  • In 2011, earnings per share turned up to a profit of EUR 0.10 per share, whereas in 2010 earnings per share were EUR -0.10. In the last quarter, earnings per share were EUR 0.07 (EUR 0.05).
  • The Board of Directors proposes for the Annual General Meeting, that a dividend of EUR 0.07 per share (EUR 0.05 per share) totalling EUR 0.46 million (EUR 0.33 million) will be distributed for the year 2011.

GROUP’S NET SALES AND PERFORMANCE

The Group’s net sales continued growing also in the end of the year. The positive sales growth and clear profit improvement have been fuelled by the sales operations development activities and the efficiency improvement initiatives managed successfully. The office supply market recovery continued in year 2011. Wulff Group’s net sales have increased faster than the market.

In the last quarter, the Group’s net sales were EUR 27.5 million (EUR 27.1). In 2011, net sales increased by 6.5 percentages and totalled EUR 99.1 million (EUR 93.1 million). The focus on sales activities and new client hunting fuelled the sales growth in both divisions and in different operating countries of the Group. The demand for the Group’s products has increased when the Group’s clientele has been served in an even broader way. The majority of the sales growth was gained in the Group’s Scandinavian companies. In 2011, the net sales have grown also in Finland, especially in the office supply contract sales.

Wulff Group’s CEO Heikki Vienola: ”We have succeeded well in the changing operational environment. The result in 2011 creates a good base to build a profitable year 2012. Being a pioneer has always been important to Wulff: we serve our customers the way they choose via the preferred channels and we offer the market’s most advanced services. Service development together with our customers is the base of our operations. Companies want to centralize their purchases to partners with a diverse product range. Wulff’s service and product range is the largest in the office supplies market – office supplies, IT supplies, ergonomics, business and promotional gifts as well as international fair services. We serve our customers with contract and direct sales concept as well as in the webstore Wulffinkulma.fi.”

Along with the sales growth, the Group’s profitability has improved positively. The positive financial development has been fuelled by the sales operations activities, cost-consciousness and the efficiency improvement initiatives managed successfully. The whole year’s EBITDA increased by 71 percentages up to EUR 2.69 million (EUR 1.58 million) in 2011. EBITDA was 2.7 percentages (1.7 %) of the net sales. In the last quarter, EBITDA was 3.9 percentages (4.7 %) of the net sales and totalled EUR 1.08 million (EUR 1.28 million). The Group, focusing on sales growth and continuing the review of its cost structure and performance efficiency, aims to improve the profitability of its businesses.

In 2011, the operating profit of EUR 1.60 million was clearly better than in 2010 (EUR 0.04 million). Operating profit was 1.6 percentages (0.00 %) of the annual net sales. The last quarter’s operating profit was EUR 0.79 million (EUR 0.90 million) being 2.9 percentages (3.3 %) of the net sales.

In 2011, the financial income and expenses totalled (net) EUR -0.46 million (EUR +0.18 million) including dividend income of EUR 0.04 million (EUR 0.15 million), interest expenses of EUR 0.34 million (EUR 0.27 million) and mainly currency-related other financial items (net) of EUR -0.15 million (EUR +0.31 million). In the last quarter, the financial income and expenses netted EUR -0.02 million (EUR -0.11 million).

The 12-month result before taxes was EUR 1.14 million being EUR 0.92 million better than in 2010 (EUR 0.22 million). In the last quarter, the result before taxes was EUR 0.76 million (EUR 0.79 million). The net result after taxes totalled EUR 0.82 million (EUR -0.42 million) for the whole year and EUR 0.56 million (EUR 0.35 million) in the last quarter.

The net result attributable to the equity holders of the parent company amounted to EUR 0.63 million (EUR   -0.62 million) in the entire year 2011 and EUR 0.47 million (EUR 0.31 million) in the last quarter. In 2011, earnings per share turned up to a profit of EUR 0.10 per share, whereas in 2010 earnings per share were EUR -0.10. In the last quarter, earnings per share were EUR 0.07 (EUR 0.05).

Return on investment (ROI) was 5.45 percentages (1.75 %) for the whole year and 3.01 percentage (3.18 %) for the last quarter. Return on equity (ROE) was 4.82 percentage (-2.38 %) in 2011 and 3.35 (2.07%) for the last quarter.

CONTRACT CUSTOMERS DIVISION

The Contract Customers Division is the customer’s comprehensive partner in the field of office supplies, IT supplies, business and promotional gifts as well as fair services. In 2011, the segment’s net sales increased by EUR 5.2 million i.e. 7 percentages up to EUR 82.5 million (EUR 77.3 million). The division’s net sales totalled EUR 22.6 million (EUR 22.4 million) in the last quarter. The division’s operating profit excluding non-recurring items was EUR 2.14 million being EUR 1.30 million better than in 2010 (EUR 0.83 million). In the last quarter, the division’s operating profit was EUR 0.88 million (EUR 0.86 million).

Wulff Supplies AB, operating in Scandinavia, managed to increase clearly its market share in 2011. Wulff Supplies made many new significant office supply contracts with its customers. Wulff Supplies’ good result continued to improve further.

Also Wulff Oy Ab, with its operations in Finland, has increased its sales and improved its operating profit in 2011. In particular the Group’s webstore Wulffinkulma.fi has grown and improved its result. The webstore is an important investment for the future. The investment has given quick results. Wulff Oy Ab’s retail and partner networks have grown also strongly and the co-operation has strengthened. The sales operations are supported by strong marketing and publicity received e.g. as Wulff is a partner of the 2012 IIHF Ice Hockey World Championship. The Group’s target is to be the Nordic market leader and the pioneer in its field.

The division’s result is affected by the cycles of the business and promotional gift market: the majority of the products are delivered and the majority of the annual profit is generated in the second and the last quarter of the year. Business and promotional gift market has brightened up in Finland. The Estonian market is recovering after the economic slowdown.

Entre Marketing Oy, the company offering international fair services, turned its result clearly up and the effectiveness of its sales organization has improved remarkably during the year 2011. Excellent results have been gained by focusing on profitable services and the company’s special expertise in the international fair service sales. With a narrower service range and a leaner organization, resources have been directed to the profitable operations. In January 2012, Entre Marketing Oy’s brand renewed and its name was changed to Wulff Entre according to the Group’s brand strategy.

DIRECT SALES DIVISION

The Direct Sales Division aims to improve its customers’ daily operations with innovative products as well as the industry’s most professional personal and local service. In 2011, the division’s net sales increased by 2 percentages from the comparable year’s EUR 16.1 million up to EUR 16.4 million. In the last quarter, the division’s net sales were EUR 4.7 million (EUR 4.8 million). The Direct Sales Division’s operating result totalled EUR 0.22 million (EUR 0.32 million) in the whole year 2011 and EUR 0.08 million (EUR 0.23 million) in the last quarter.

A good profitability level was achieved in the Scandinavian direct sales companies during 2011. Sales grew and profitability improved in Sweden and Norway. Compensation systems were renewed to encourage personnel better towards profitable results. Development of the product and service portfolio has been invested in strongly. The Group’s new partnering strategy aims to gain synergies in product purchases. Group-level price competitions in purchases and co-operation have already gained good results especially in the Scandinavian direct sales.

The Finnish Direct Sales organization was renewed with an administrational merger of seven subsidiaries in the end of the year. The reorganization continued in February 2012 when Finland’s Direct Sales organization got a common Development and Sales Director. Consequently the management of Direct Sales can focus even stronger on sales development. In 2012, the most important development projects are the renewal and integration of sales support systems e.g. a new CRM system. Marketing and sales are supported strongly with new tools in 2012.

The talented and skilled personnel is Wulff’s growth engine. In 2011, the renewal of the personnel development program was started. Concrete renewals are e.g. a new development and target discussion method and managers’ own training program launched in early 2012. In the changing market, success requires good and strong leadership and therefore the Group invests significantly in regular management training.

The Group has potential to recruit several new sales talents in its operational countries. Wulff is known as a sales academy. A sales organization is a good leadership school and sales experience is valued increasingly wide also in Finnish companies. Being a growing and internationalizing Group, Wulff has possibilities to employ both experienced sales professionals and new sales talents, who are entering the industry for the first time, as well as people who are changing jobs. Wulff provides a suitable training program for each new employee. Additionally the Group offers a possibility to get a commercial elementary degree along the work.

FINANCING, INVESTMENTS AND FINANCIAL POSITION

The cash flow from operating activities was strongly positive and totalled EUR 4.05 million (EUR 3.16 million) in the last quarter and EUR 1.03 million (EUR 1.53 million) in the entire year. The Group has enhanced its working capital management.  

For its fixed asset investments, the Group paid a net of EUR 0.27 million (EUR 0.28 million) in the last quarter and EUR 0.80 million (EUR 1.32 million) in the whole year. In 2011, the Group paid EUR 0.98 million (EUR 0.22 million) for subsidiary and minority acquisitions made in the previous financial years.

The Group repaid loans of net EUR 2.51 million (EUR 0.27 million) in the last quarter and EUR 0.79 million (EUR 0.47 million) in the whole year. Wulff Group Plc paid its shareholders dividends of EUR 0.33 million (EUR 0.33 million) and additionally the minority shareholders of the subsidiaries were paid dividends of EUR 0.11 million (EUR 0.15 million).

In general, the Group’s cash balance increased by EUR 1.29 million (EUR 2.59 million) in the last quarter and decreased by EUR 1.93 million (EUR 0.96 million) during the whole year from the beginning value of EUR 4.38 million down to EUR 2.46 million as of December 31, 2011.

The equity attributable to the equity holders of the parent company totalled EUR 2.45 per share (December 31, 2010: EUR 2.41) and the equity-to-assets ratio was 40.3 percentages (December 31, 2010: 37.0 %).

SHARES AND SHARE CAPITAL

Based on the authorization of the Annual General Meeting held on April 23, 2010, the acquisition of own shares continued in early 2011. Authorized by the Annual General Meeting held on April 28, 2011, the Board of Directors decided in its organizing meeting to continue buying back a maximum of 300,000 own shares by the next Annual General Meeting. In April-December 2011, no own shares were reacquired. In the end of the reporting period, the Group held a total of 90,000 own shares (99,036 as of December 31, 2010) representing 1.4 percentage (1.5 %) of the total number and voting rights of Wulff shares.

Wulff Group Plc’s share is listed on NASDAQ OMX Helsinki in the Small Cap segment under the Consumer Discretionary sector. The company’s trading code is WUF1V. In the end of the reporting period, the share was valued at EUR 1.99 (EUR 2.60) and the market capitalization of the outstanding shares totalled EUR 13.0 million (EUR 16.9 million).

PERSONNEL

In 2011, the Group’s personnel totalled 365 (384) employees on average. In the end of the period, the Group had 359 (370) employees of which 134 (132) persons were employed in Sweden, Norway, Denmark or Estonia.

The majority, approximately 60 percentages of the Group’s personnel works in sales operations and approximately 40 percentages of the employees work in sales support, logistics and administration. The personnel consists approximately half-and-half of men and women.

In order to strengthen the organic sales growth, the Group focuses on the recruitment of the sales personnel. The Group has possibilities to recruit several new sales talents in its operational countries during 2012.

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for office supplies is still affected by the organizations’ personnel lay-offs and cost saving initiatives made during the economic downturn. The general uncertainty may still continue which will most likely affect the ordering behaviour of some corporate clients in 2012.

Although the business gifts are seen increasingly as a part of the corporate communications as a whole and they are utilized also in the off-season, some cost savings may be sought after by decreasing the investments in the brand promotion. The ongoing economic uncertainties impact especially the demand for business and promotional gifts. During the uncertain economic periods, the corporations may also minimize attending fairs.

Half of the Group’s net sales comes from other than euro-currency countries. Fluctuation of the currencies may affect the Group’s net result and financial position.

BOARD OF DIRECTORS’ DIVIDEND PROPOSAL            

The parent company’s distributable funds totalled EUR 5.59 million. The Group’s net result attributable to the parent company shareholders was EUR 0.63 million i.e. EUR 0.10 per share (EUR -0.10 per share). The Board of Directors proposes to the Annual General Meeting that for the financial year 2011, a dividend of EUR 0.07 per share (0.05 per share) totalling EUR 0.46 million (EUR 0.33 million) will be distributed. At the date of the dividend distribution, the own shares held by the Company are not paid any dividend. The remaining distributable funds of EUR 5.13 million will be retained in the shareholders’ equity.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its industry. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions.

Also in 2012, the Group continues taking actions for enhancing profitability. The Group focuses on the growth and development of its sales operations. The Group expects to win new customers and gain growth especially along with Wulff Supplies AB in Scandinavia and with the webstore Wulffinkulma.fi in Finland. The Group has good possibilities to increase its net sales and operating profit in 2012.

FINANCIAL REPORTING AND ANNUAL GENERAL MEETING IN 2012

Wulff Group Plc will release the following financial reports in 2012:

Annual Report 2011 week 12/2012
Interim Report, January-March 2012 Friday May 11, 2012
Interim Report, January-June  2012 Friday August 10, 2012
Interim Report, January-September 2012 Thursday November 8, 2012

Wulff Group Plc’s financial Reports are published in Finnish and in English, and they are available at the Group’s website www.wulff-group.com.

Wulff Group Plc’s Annual General Meeting will be held on Monday April 23, 2012. A separate notice to the Annual General Meeting will be published prior to the meeting.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

INCOME STATEMENT IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
Net sales 27 526 27 073 99 129 93 107
Other operating income 24 94 238 467
Materials and services -18 055 -17 384 -65 532 -60 516
Employee benefit expenses -5 283 -5 071 -19 204 -18 617
Other operating expenses -3 127 -3 429 -11 942 -12 866
EBITDA 1 084 1 284 2 689 1 575
Depreciation and amortization -300 -381 -1 095 -1 182
Impairment       -350
Operating profit/loss 785 903 1 595 43
Financial income 77 65 182 755
Financial expenses -98 -175 -637 -575
Profit/Loss before taxes 763 794 1 139 223
Income taxes -198 -446 -320 -637
Net profit/loss for the period 564 347 819 -415
         
Attributable to:        
   Equity holders of the parent company 468 308 634 -623
   Non-controlling interest 96 39 185 209
         
Earnings per share for profit        
attributable to the equity holders        
of the parent company:        
Earnings per share, EUR 0,07 0,05 0,10 -0,10
(diluted = non-diluted)        
         
         
STATEMENT OF COMPREHENSIVE INCOME IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
Net profit/loss for the period 564 347 819 -415
Other comprehensive income, net of tax        
Change in translation differences 110 41 34 134
Fair value changes on available-for-sale investments 54 57 -4 42
Total other comprehensive income 164 98 30 176
Total comprehensive income for the period 728 445 849 -238
         
Total comprehensive income attributable to:        
   Equity holders of the parent company 570 377 663 -540
   Non-controlling interest 158 68 186 302
STATEMENT OF FINANCIAL POSITION     Dec 31 Dec 31
EUR 1000     2011 2010
ASSETS        
Non-current assets        
Goodwill     9 467 9 501
Other intangible assets     1 355 1 382
Property, plant and equipment     2 102 2 285
Non-current financial assets        
   Interest-bearing financial assets     97 503
   Non-interest-bearing financial assets     367 442
Deferred tax assets     1 621 1 011
Total non-current assets     15 008 15 124
         
Current assets        
Inventories     11 280 11 740
Current receivables        
   Interest-bearing receivables     51 74
   Non-interest-bearing receivables     15 646 14 708
Financial assets recognised at fair value through profit/loss     56  
Cash and cash equivalents     2 464 4 379
Total current assets     29 497 30 902
         
TOTAL ASSETS     44 505 46 025
         
EQUITY AND LIABILITIES        
Equity        
Equity attributable to the equity holders of the parent company:        
   Share capital     2 650 2 650
   Share premium fund     7 662 7 662
   Invested unrestricted equity fund     223 223
   Retained earnings     5 461 5 121
Non-controlling interest     1 198 1 158
Total equity     17 195 16 814
         
Non-current liabilities        
Interest-bearing liabilities     7 409 8 403
Deferred tax liabilities     128 136
Total non-current liabilities     7 537 8 539
         
Current liabilities        
Interest-bearing liabilities     2 135 2 425
Non-interest-bearing liabilities     17 639 18 247
Total current liabilities     19 773 20 673
         
TOTAL EQUITY AND LIABILITIES     44 505 46 025
STATEMENT OF CASH FLOW IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
         
Cash flow from operating activities:        
   Cash received from sales 27 606 27 248 98 153 91 189
   Cash received from other operating income 15 47 130 339
   Cash paid for operating expenses -23 262 -23 990 -96 462 -89 433
Cash flow from operating activities before financial items and income taxes 4 360 3 305 1 821 2 095
   Interest paid -48 -48 -278 -274
   Interest received 29 17 93 79
   Income taxes paid -296 -118 -605 -372
Cash flow from operating activities 4 045 3 155 1 031 1 528
         
Cash flow from investing activities:        
   Investments in intangible and tangible assets -265 -314 -1 253 -1 509
   Proceeds from sales of intangible and tangible assets   36 456 187
   Loans granted     -12  
  Repayments of loans receivable   25 74 29
Cash flow from investing activities -265 -253 -735 -1 293
         
Cash flow from financing activities:        
   Acquisition of own shares   -25 -3 -110
   Dividends paid   -15 -433 -484
   Dividends received 18   40 149
   Payments for subsidiary acquisitions 0   -982 -219
   Cash paid for (received from) short-term investments (net) 7   -56 -55
   Withdrawals and repayments of short-term loans -2 576   173 914
   Withdrawals of long-term loans 385   385  
   Repayments of long-term loans -319 -269 -1 348 -1 388
Cash flow from financing activities -2 486 -308 -2 226 -1 193
         
Change in cash and cash equivalents 1 294 2 594 -1 930 -958
Cash and cash equivalents at the beginning of the period 1 155 1 785 4 379 5 337
Translation difference of cash 15   15  
Cash and cash equivalents at the end of the period 2 464 4 379 2 464 4 379

STATEMENT OF CHANGES IN EQUITY

EUR 1000 Equity attributable to equity holders of the parent company  
      Fund            
      for in-            
      vested            
      non-   Trans- Re-   Non-  
    Share re-   lation tai-   cont-  
    pre- strict-   diffe- ned   rolling  
  Share mium ed Own ren- Earn-   inte-  
  capital fund equity shares ces ings Total rest TOTAL
                   
Equity on Jan 1, 2010 2 650 7 662 223 -211 -190 6 751 16 886 1 117 18 003
Net profit
/loss for the period
 
          -623 -623 209 -415
Other comprehensive income*:                  
   Change in trans-
lation differ-
ences
 
        41   41 93 134
   Fair value changes on available-for-sale invest-
ments
 
          42 42   42
Comprehensive income *
 
        41 -581 -540 302 -238
Dividends paid
 
          -327 -327 -157 -484
Treasury share acquisition
 
      -110     -110   -110
Treasury share disposal
 
      42   -42 0   0
Share-
based payments
 
          42 42   42
Changes in ownership
 
          -294 -294 -103 -398
Equity on Dec 31, 2010 2 650 7 662 223 -279 -149 5 549 15 656 1 158 16 814
                   
                   
Equity on Jan 1, 2011
 
2 650 7 662 223 -279 -149 5 549 15 656 1 158 16 814
Net profit
/loss for the period
 
          634 634 185 819
Other comprehensive income*:
 
                 
   Change in trans-
lation differ-
ences
 
        33   33 1 34
   Fair value changes on available-for-sale invest-
ments
 
          -4 -4   -4
Comprehensive income *
 
        33 630 663 186 849
Dividends paid
 
          -325 -325 -110 -435
Treasury share acquisition
 
      -3     -3   -3
Share-
based payments
 
          5 5   5
Changes in ownership
 
            0 -36 -36
Equity on Dec 31, 2011
 
2 650 7 662 223 -283 -116 5 860 15 996 1 198 17 195

* net of tax

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEGMENT INFORMATION IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
         
Net sales by operating segments        
Contract Customers Division 22 581 22 444 82 542 77 301
Direct Sales Division 4 692 4 787 16 397 16 075
Group Services 371 249 1 138 1 257
Intragroup eliminations between segments -117 -407 -948 -1 525
TOTAL NET SALES 27 526 27 073 99 129 93 107
         
Operating profit/loss by operating segments        
Contract Customers business 879 855 2 136 832
Goodwill Impairment       -350
Contract Customers Division Total 879 855 2 136 482
         
Direct Sales Division Total 78 234 215 324
         
Group Services and non-allocated items -172 -186 -756 -764
TOTAL OPERATING PROFIT/LOSS 785 903 1 595 43
KEY FIGURES IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
Net sales 27 526 27 073 99 129 93 107
Increase/Decrease in net sales, % 1,7 % 5,2 % 6,5 % 24,5 %
EBITDA 1 084 1 284 2 689 1 575
EBITDA margin, % 3,9 % 4,7 % 2,7 % 1,7 %
Operating profit/loss 785 903 1 595 43
Operating profit/loss margin, % 2,9 % 3,3 % 1,6 % 0,0 %
Profit/Loss before taxes 763 794 1 139 223
Profit/Loss before taxes margin, % 2,8 % 2,9 % 1,1 % 0,2 %
Net profit/loss for the period attributable to equity holders of the parent company 468 308 634 -623
Net profit/loss for the period, % 1,7 % 1,1 % 0,6 % -0,7 %
Earnings per share, EUR (diluted = non-diluted) 0,07 0,05 0,10 -0,10
Return on equity (ROE), % 3,35 % 2,07 % 4,82 % -2,38 %
Return on investment (ROI), % 3,01 % 3,18 % 5,45 % 1,75 %
Equity-to-assets ratio at the end of period, % 40,3 % 37,0 % 40,3 % 37,0 %
Debt-to-equity ratio at the end of period 40,3 % 34,9 % 40,3 % 34,9 %
Equity per share at the end of period, EUR * 2,45 2,41 2,45 2,41
Investments in non-current assets 234 424 1 167 1 619
Investments in fixed assets, % of net sales 0,9 % 1,6 % 1,2 % 1,7 %
Treasury shares held by the Group at the end of period 90 000 99 036 90 000 99 036
Treasury shares, % of total share capital and votes 1,4 % 1,5 % 1,4 % 1,5 %
Number of total issued shares at the end of period 6607628 6607628 6607628 6607628
Personnel on average during the period 368 381 365 384
Personnel at the end of period 359 370 359 370

* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares

QUARTERLY KEY FIGURES IV III II I IV III II I
EUR 1000 2011 2011 2011 2011 2010 2010 2010 2010
Net sales 27 526 21 971 24 390 25 242 27 073 20 435 24 016 21 584
EBITDA 1 084 567 756 282 1 284 228 2 61
Operating profit/loss 785 308 491 10 903 -411 -289 -160
Profit/Loss before taxes 763 151 318 -93 794 -327 -200 -43
Net profit/loss for the period attributable to the equity holders of the parent company 468 105 241 -180 308 -557 -134 -240
Earnings per share, EUR (diluted = non-diluted) 0,07 0,02 0,04 -0,03 0,05 -0,09 -0,02 -0,04
RELATED PARTY TRANSACTIONS IV IV I-IV I-IV
EUR 1000 2011 2010 2011 2010
Sales to related parties 25 25 184 93
Purchases from related parties 7 14 30 114
Current non-interest-bearing receivables from related parties     6  
Non-current interest-bearing receivables from related parties   566 87 566
Loan payables to related parties   492   492
COMMITMENTS     Dec 31 Dec 31
EUR 1000     2011 2010
Mortgages and guarantees on own behalf        
   Business mortgage for the Group’s loan liabilities     7 350 7 350
   Real estate pledge for the Group’s loan liabilities     900 900
   Subsidiary shares pledged as security for group companies’ liabilities     3 284 3 284
   Other listed shares pledged as security for group companies’ liabilities     215 289
   Current receivables pledged as security for group companies’ liabilities     258 255
   Pledges and guarantees given for the group companies’ off-balance sheet commitments     222 221
Guarantees given on behalf of third parties     176 236
Minimum future operating lease payments     5 861 6 820

Accounting principles applied in the condensed consolidated financial statements

These condensed consolidated financial statements are unaudited. This report has been prepared in accordance with IAS 34 following the valuation and accounting methods guided by IFRS principles. The accounting principles used in the preparation of this report are consistent with those described in the Financial Statement 2010 taking into account also the new, revised and amended standards and interpretations. Income tax is the amount corresponding to the actual effective rate based on year-to-date actual tax calculation. Adopting the amendments in IAS 24, IAS 32, IFRIC 14 and IFRIC 19 did not have a material impact on the information presented in this report.

The IFRS principles require the management to make estimates and assumptions when preparing financial statements. Although these estimates and assumptions are based on the management’s best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements.

The Group’s pension premium loans are secured with a bank guarantee, the margin of which is linked to the covenants regarding the equity ratio and the interest-bearing debt/EBITDA ratio. The equity ratio shall be 35 % at minimum and the interest-bearing debt/EBITDA ratio shall be 3.5 at maximum in the end of each year. On December 31, 2011 the equity ratio was 40.3 % (December 31, 2010: 37.0 %) and the interest-bearing debt/EBITDA ratio was 3.5 in accordance with the covenant requirement.

The Group has no knowledge of any significant events after the end of the financial period that would have had a material impact on this report in any other way that has been already discussed in the review by the Board of Directors.

In Vantaa on February 7, 2012

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

CEO Heikki Vienola

tel. +358 9 5259 0050 or mobile: +358 50 65 110

e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com