Itella Corporation’s financial performance in 2007: Steady growth continues

15.02.2008

Itella Group’s net sales amounted to €1,688.3 million, up 8.9%. The strongest growth occurred in Itella Information (17.4%) and Itella Logistics (16.9%). Of consolidated net sales, 25% came from outside Finland.
Operating profit (EBIT) came to €101.8 million, up 14.4 %. The EBIT margin increased slightly to 6.0%.
The Board of Directors’ dividend proposal is €39 million. Employees will receive €6 million in profit-sharing bonuses.
Itella Mail Communication launched a four-year project to develop mail sorting and delivery in Finland. This investment programme, worth in excess of €150 million, will include the construction of new sorting centres in Oulu and Kuopio, the expansion of the Tampere sorting centre and equipment investments in the Helsinki sorting centre.
Itella Information improved its profitability through electronic and document management services. Its operations will be expanded to Poland in 2008.
Itella Logistics opened its first logistics centre in Moscow. New centres were also opened in Oslo, Norway and Kaunas, Lithuania. The logistics centre under construction in St Petersburg will begin operating in the spring of 2008. Acquisitions were made in Sweden (PS Logistics AB) and Finland (SHW Logistiikka Oy).
In January 2008, Itella Logistics announced the acquisition of the Finnish Kauko Group, which specialises in international freight services.

Key figures of Itella Group	2007	2006	2005
Net sales, MEUR	1,688.3	1,550.6	1,348.2
Operating profit (EBIT), MEUR	101.8	89.0	97.8
EBIT margin, %	6.0	5.7	7.3
Comparable operating profit, MEUR	101.8	90.9	86.2
Profit before tax, MEUR	109.5	94.4	103.7
Return on equity, %	11.1	10.1	10.0
Return on investment, %	15.6	14.1	15.4
Equity ratio,%	65.9	65.1	63.5
Gearing, %	-36.4	-32.1	-34.3
Personnel in average	25,623	25,294	24,624
Capital expenditure, MEUR	94.2	69.5	143.0
Dividends, MEUR	39.0 *)	27.0	43.0
*) Board of Directors' proposal

Jukka Alho, President and CEO:

“All of our markets saw exceptionally favourable economic conditions in 2007. This was also reflected in Itella’s operations – we succeeded in the markets, growing both organically and through acquisitions. As a result of the steps taken to increase our productivity, relative profitability remained stable, something with which we can be satisfied during a period of strong expansion and investment.

Key tasks for 2008 include the improvement of productivity to compensate for the sharp rise in labour and fuel costs. Major investments in the development of mail delivery are progressing in Finland. Acquisitions will be continued in line with our strategy.”

FOR FURTHER INFORMATION, PLEASE CONTACT:

Jukka Alho, President and CEO, tel. +358 20 451 5600
Tuija Soanjärvi, CFO, tel. +358 20 45 20907
www.itella.com/group

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