Managing Director's Review 2006

Nordic Aluminium continued in 2006 the positive development started in 2004.

Consolidated net sales in the fiscal year 2006 grew to EUR 96.57 million from EUR 80.77 million in the previous year. The growth in sales was partly due to the high increase in aluminium world market prices but also the operational growth exceeded 10 per cent. In lighting track production, one of the Company's key business areas, the growth was exceptionally good exceeding 30 per cent.

Net profit improved to EUR 8.06 million from the previous years' EUR 6.65 million.
Key factors were, following the strategic plan, focusing on key operations and increasing the added value.

Investments were on the same level as in 2005 and moderate comparing to net sales. Investments were focused on processing capacity improvement, industrialization 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year investments will be moderate and will be aimed at operative efficiency, processing capacity and replacement of outdated equipment.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 focusing in core business areas the Company has continued outsourcing operations to chosen subcontractors. At the same time the Company has focused on supply chain management and efficient material flows, as well as creation of a sound base for efficient processes. The main goal for year 2007 is increasing productivity on the factory floor. Main measures are: the development of efficient and clear material flows, focused investments on operative efficiency and increase of technical know-how on all levels.

The market demand in the whole aluminium trade is exceptionally good, which is visible in increased order stocks and prolonged delivery times. The demand is expected to continue at a good level the first half of the year.

Growth prospects in export are positive for the electrotechnical products. The Company is market leader in lighting tracks throughout Europe, and strives to strengthen its position in Russia and also in the USA.

The Company aims to continue a good profit development in 2007.

Kirkkonummi, March 2007,
Robert Paajanen, Managing Director and CEO