Automotive and Wireless Business Segments

Development of the Wireless Business Segment in 2013

The Wireless Business Segment“s net sales from Continuing Operations in 2013 decreased by 3.7 per cent year-on-year, to EUR 61.2 million (EUR 63.5 million, in 2012). The decrease in the net sales was due to decline in the demand for R&D services in the wireless telecommunications market. In the fourth quarter EB started the product deliveries of the tactical communication system to Finnish Defence Forces and delivered a batch of special terminal products to one customer for the authority use. These product deliveries generated product based net sales of EUR 6.9 million in the fourth quarter, the rest of the net sales being R&D services sales.

The operating loss from Continuing Operations of the Wireless Business Segment in 2013 was EUR -0.5 million including the non-recurring cost of approximately EUR 0.8 million resulting from the cost saving measures in the first quarter of 2013 (operating profit of EUR -2.2 million including non-recurring items of approximately EUR 4 million weakening operating result, in 2012). In addition to the decreased net sales, the profitability was negatively affected in 2013 by the ongoing investments into the marketing and product development of products targeted for the global defense and other authority markets, which investments are expected to start gradually generating net sales from the latter half of 2014 onwards. Operating result of the Wireless Business Segment in 2013 without non-recurring costs was EUR 0.4 million (EUR 1.8 million in 2012).