Managing Director's Review 2005

Nordic Aluminium continued the positive development that started in 2004. Net sales were EUR 80,77 million, growing 8,4 per cent from the previous year. The key figures developed as expected. Net profit was EUR 6,65 million compared with the EUR 4,68 million the year before.

Investments were less than in the previous year, and moderate comparing to net sales. Investments were focused on machinery, industrialisation and automation. During the current year investments will be moderate and will be aimed at operative efficiency, processing capacity and replacement of outdated equipment.

As part of the Company's strategy to focus on key operations, the Hutchinson factory was sold to the operative management with a MBO deal. In Finland Nordic Aluminium concentrated on development of chosen technologies and operations. Several non-key operations were outsourced.

Sales to key customers developed according to targets. International delivery channels improved as planned.

Main goals for the current year are increasing net sales, improving operations in every sector, cutting variable expenses and fixed costs and training the personnel.

As leading lighting track manufacturer in Europe, Nordic Aluminium shall focus on maintaining its competitional advantage. The investment in a new manufacturing line will improve the competitiveness of the track manufacturing during the year. The organisation and the processes will be trimmed to strengthen performance and market share. The company wants to increase its market share in Europe, were it is market leader, later also in USA and Asia. An important step in the market development is the presentation of latest innovations on the Light&Building Fair in Frankfurt, the leading world light show.

Kirkkonummi, March 2006,
Robert Paajanen, Managing Director