S o l u t i o n s f o r T e l e c o m m u n i c a t i o n s & I n d u s t r i a l E l e c t r o n i c s 3.4.2008 SCANFIL PLC’S ANNUAL GENERAL MEETING HARRI

S o l u t i o n s f o r T e l e c o m m u n i c a t i o n s & I n d u s t r i a l E l e c t r o n i c s 3.4.2008

SCANFIL PLC’S ANNUAL GENERAL MEETING

HARRI TAKANENPRESIDENT


YEAR 2007

Implementation of the chosen strategy was successful and profitability retained at a satisfactory level. The Company’s excellent financial position is the result of Scanfil’s cost-efficient operations, competitiveness and good service competence.

In the industrial electronics products market, both the volume of production and the sales continued to grow steadily throughout the year. Global mega trends have had a positive effect on the markets where Scanfil's industrial electronics customers operate.

In 2007, the telecommunications network products market was characterised by corporate restructurings implemented by large players in the field. These affected the operations of contract manufacturers of network products.

Telecommunications customers accounted for about 69 (72)% and industrial electronics customers for about 31 (28)% of the turnover.

The reorganisation of operations in Finland was completed during the year, and the operations in Finland were concentrated in Sievi and Vantaa. All the resources assigned to the reorganisation of operations in Finland were released and engaged in business development again by the end of the year. Scanfil plc’s Belgian subsidiary Scanfil N.V. sold its plant site in Belgium and n Finland, Scanfil plc sold its Äänekoski plant site.


SCANFIL OYJFINLAND- main office- 3 factories- integrated enclosure systems- equipment racks- electronic modules - backplanes- test systems-engineering

SCANFIL OÜESTONIA,PÄRNU- electronic modules- backplanes- cable assemblies- integration

SCANFIL(SUZHOU) CO.,LTD.CHINA, SUZHOU - electronic modules- backplanes- cable assemblies- integrated cabinets

SCANFIL(HANGZHOU) CO.,LTD.CHINA, HANGZHOU - sheet metal mechanics- integrated enclosure systems - equipment racks

SCANFIL KFTHUNGARY,BUDAPEST- sheet metal mechanics- integrated enclosure systems - equipment racks


Turnover annually

241,

4

321,

6

313,

4

275,

2

224,

6

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007

meu

r

FAS IFRS


Operating profit annually

35,

0

32,

3

32,

3

FAS IFRS

27,3

28,2

25,2

18,6

11,4

0

5

10

15

20

25

30

2003 2004 2005 2006 2007

meu

r


Turnover and –operating profit % quarterly 2007

59,1

54,3

58,9

52,2

10,2%9,4 %

6,7 %6,8 %

0

10

20

30

40

50

60

70

80

Q1 Q2 Q3 Q4

meu

r

0,0 %

2,0 %

4,0 %

6,0 %

8,0 %

10,0 %

Turnover % of turnover


Turnover geographically

1 %

2 %

25 %

29 %

43 %

2006 2007

1 %

30 %

1 %

25 %

43 %

Finland

Rest of EU

Asia

USA

Others


Sales geographically

2006 2007

45 %32 %

23 %

39 %

20 %

41 %Finland

Rest of EU

Asia


Personnel

291

151

1106

513Finland

Belgium

China

Hungary

Estonia

31.12.2007Total 2061

629

950

294

189

31.12.2006 Total 2073


Earnings / share and dividend / share

0,24

0,14

0,10 0,

12

0

0,05

0,1

0,15

0,2

0,25

0,3

2006 2007 2006 2007

eur

Earnings/share Divided/share


Equity ratio

73

,6

73

,6

66

,5

59

,4

60,

2

20

30

40

50

60

70

80

2003 2004 2005 2006 2007

%

FAS IFRS


Return on investment

14

,1

9,0

18

,619

,8

19

,7

0,0

5,0

10,0

15,0

20,0

25,0

2003 2004 2005 2006 2007

%

FAS IFRS

S o l u t i o n s f o r T e l e c o m m u n i c a t i o n s & I n d u s t r i a l E l e c t r o n i c s 3.4.2008-3

1,8

-19

,1-15

,2

-7,5

5,8

-35,0

-30,0

-25,0

-20,0

-15,0

-10,0

-5,0

0,0

5,0

10,0%

Gearing

FAS IFRS

2003 2004 2005 2006 2007


5,0

13

,9

24

,226

,5

-12

,4

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0m

eu

r

Cash flow after investments

FAS IFRS

2003 2004 2005 2006 2007


Rate development and exchange

The highest share price was EUR 2.49, the lowest EUR 1.92 and the share price at the end of the period EUR 1.95

0,00

0,50

1,00

1,50

2,00

2,50

3,00

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

J an-07 Feb-07 March-07 April-07 May-07 J une-07 J uly-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07

Rat

e

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

Wee

k ex

chan

ge

Exchange Scanfil Oyj


6,4 %

2,0 %

3,3 %

81,5 %

0,5 % 6,3 %

Corporations

Financial and insuranceinstitutions

Public entities

Non-profit-makingorganisations

Households

Non-Finnish owners

Share ownership 31.12.2007

Major share holders Breakdown of share ownership by owner category

Takanen Jorma 29,0Kotilainen Eero 12,0Takanen Harri 6,4Takanen Jonna 5,4Pöllä Reijo 5,1Takanen Jarkko 4,2Scanfil Oyj 3,3Takanen Martti 3,2Nordea Pankki Suomi Oyj, nom-reg 3,1Riitta ja Jorma J. Takasen Säätiö 3,1Takanen Riitta 1,7Skandinaviska Enskilda Banken, nom-reg 1,3Laakkonen Mikko 1,1Takanen Raimo 1,0Keskinäinen Eläkevakuutusyhtiö Ilmarinen 1,0Total 80,9 %


Future prospects

• Demand in the industrial electronics sector is expected to continue growing in 2008. In addition, negotiations are in progress with potential new customers in the industrial electronics sector.

•The growth of the telecommunications equipment market is generally estimated to remain very low in 2008. Turnover from telecommunications equipment supplied by Scanfil is expected to remain unchanged from year-end 2007.

• Scanfil expects its turnover in 2008 to be about the same as in 2007. Profitability for the full year is estimated to be at a satisfactory level. However, market predictability is still poor.

• The Company’s good financial position provides an opportunity to actively seek various means and arrangements that will put Scanfil’s operations back on a growth track.


SCANFIL PLC’S ANNUAL GENERAL MEETING

JORMA J. TAKANENCHAIRMAN OF THE BOARD


• The Board of Scanfil Oyj proposes the transfer of the contract manufacturing business with a business transfer to Scanfil EMS Oy

• The purpose of the procedure is to ease company reorganization and to manage finances efficiently and profitably by spreading risks and to search for new growth possibilities.

• The objective is to earn a higher than market average return on invested capital.

• Advance ruling from the Large Taxpayers’ Office has been applied for for the business transfer. Large Taxpayers’ Office stated that the transfer has no effect on taxation.

• This procedure does not have any special personnel effects. • All employee contracts will continue on current terms.

Transfer of business to Scanfil EMS Oy


• The company has been registered in the Trade Register as of March 12, 2008, share capital 5 000 €

• The company intends to operate as the parent company of the contract manufacturer businesses.

• The companies in China, Hungary and Estonia would become subsidiaries of Scanfil EMS Oy.

Scanfil EMS Oy


SCANFIL PLC

Scanfil Oü

Scanfil (Suzhou) Co.,Ltd

Scanfil Kft

Scanfil (Hangzhou) Co.,Ltd

Scanfil NV Scanfil

EMS OyContract manufacturingGroup

new company/

associatedcompany

New Group structure


• All the assets and debts of Scanfil plc’s contract manufacturing business will transfer at the bookkeeping value to Scanfil EMS Oy• will transfer to Scanfil EMS Oy:

– immaterial rights – machines and equipment–shares of the China, Hungary and Estonia subsidiaries – current assets/inventory– short term receivables and debts except for the ones associated with the company in Belgium (Scanfil NV)

• Scanfil plc will retain: – the building it owns – Scanfil NV’s shares, the company has no production operations – assets that are not related to the actual business, mainly financing assets/equity

Property/assets to transfer


Next three slides show, how the balance sheet of Scanfil plc and Scanfil EMS Oy would look like, if the business transfer was executed on the basis of 31 December 2007 figures.


Balance sheet, EUR 1000

Figures are as an example








• A tax neutral business transfer requires the transfer of assets, debts and

reserves according to business tax law. The business entity must transfer all

the above mentioned items in the business transfer to the continuing company

at a value of the receiving company’s new share issue of bookkeeping value.

• Scanfil EMS Oy makes a share issue directed for Scanfil Oyj

• The share subscription price is the difference of the transferred assets and

debts.

• If the business transfer would be realized based on the balance sheet of Dec

31, 2007, the share issue of the subsidiary would be about 87 million euros.

Share issue of the subsidiary


• After the business transfer, Scanfil EMS Oy’s balance sheet will be too ”strong”, the equity ratio will be over 80%

• The targeted equity ratio is about 40 %

• Lightening of the balance sheet can be realized by having Scanfil EMS Oy return/refund the invested capital to Scanfil Oyj by reducing equity or reducing the ”free” equity fund according to the corporate law.

• It will be possible to refund the capital during 2009

Scanfil EMS Oy’s equity

Documents

S o l u t i o n s f o r T e l e c o m m u n i c a t i o n s & I n d u s t r i a l E l e c t r o n i c s 3.4.2008 SCANFIL PLC’S ANNUAL GENERAL MEETING HARRI