2007 - Etman Distribusjon

Quarterly Report 2 Q
2007
Etman International ASA
27.08.2007
English version

Etman International ASA Accounts for 2q 2007
Highlights
• Application for listing on the Oslo Axess was sent to Oslo Exchange the
06.07.2007. It is expected that the Oslo Stock Exchange Committee will treat the
application in the end of August.
• The growth in turnover was 49%, reaching MNOK 59,9 the first half of 2007. The
main reason being the acquisition of Sepo AS the 1 st of March 2007.
• Result of operations (EBIT) was MNOK 0,9, compared to MNOK 1,4 for the
corresponding period in 2006. The decrease was mainly due to increase of sales and
administration costs related to the subsidiary Sepo AS.
• Total assets and equity amounted to MNOK 121,6 and MNOK 43,1 respectively,
implying an equity ratio of 35,5%.
Key Figures
Period Period Accum. Accum. Change
2006-
2007 Q2 2006 Q2 2007 H1 2006 H1 2007
Total
2006
Revenue (MNOK) 30,3 17,0 59,9 40,1 49,4 % 94,4
Result of operations - EBIT (MNOK) 0,0 -0,8 0,9 1,4 -37,1 % 3,9
Profit before taxes (MNOK) -0,6 -1,0 0,0 1,1 -103,6 % 3,2
Result of the period (MNOK) -0,4 -0,8 0,1 1,2 -92,2 % 2,1
Net cash flow from operations (MNOK) -0,2 5,3 1,9 0,3 608,0 % -0,3
Cash and cash equivalents (MNOK) 15,7 8,5 85,6 % 8,5
Number of employees end of period 397,0 308,0 28,9 % 342,0
Chinese employees end of period 373,0 300,0 24,3 % 320,0
Result per share (NOK) -0,02 -0,04 0,00 0,05 -92,7 % 0,10
EBIT margin 0,1 % -4,8 % 1,4 % 3,4 % 4,1 %
Equity ratio 35,5 % 46,5 % 41,8 %

Business activities
The company’s main activity is participation
and investments in other companies and
production, distribution and sales of electrical
products and plastic components. The head
office is located in Egersund and production is
located in Changzhou, China by the
subsidiary, ETM Electrical Co. Ltd (100%).
Distribution in Scandinavia is handled by the
subsidiary Etman Distribusjon AS in Egersund
(100 %), Sepo AS in Trondheim (100 %), and
Etmas AB (100%) in Gnosjø, Sweden.
ETM Electrical Co. Ltd controls Jerry Ltd.
(100%), Shanghai, who is the Chinese
distributor of ETM manufactured products and
other products purchased for resale, and De
Wei System Integration Co Ltd. (100%) who
distributes the company’s energy saving
products for the Chinese market.
In March 2007 Etman International ASA
acquired 100 % of the company Sepo AS in
Trondheim. In addition to being a distributor
of electrical products Sepo AS has been a
manufacturer of el-boards, distributors,
temporary installations, etc. for the Norwegian
electro market.
Highlights
The company applies for listing on Oslo
Axess in the 3rd quarter of 2007 to facilitate
access to human- and financial resources. The
Board of Directors consider
this to be an important element in the process
of further development of the group.
This is also the reason for the above
mentioned acquisition of Sepo AS.
Financial result and operations
Operating revenues were MNOK 59,9 for the
1st half of 2007, which is up 49% from same
period in 2006. The result of operations
Summary
for the 1st half of 2007 was MNOK 0,9 versus
1,4 MNOK in the corresponding period of 2006.
The main reason for the drop in result is increase
in sales- and administration cost related to the
subsidiary Sepo AS. A temporary reduction in
margins is also experienced in the restructuring
of the group.
Profit before taxes was MNOK 0,0 for the 1st
half of 2007 compared with MNOK 1,1 in the
same period in 2006.
Net profit after allowing for calculated taxes was
MNOK 0,1 for the 1st half of 2007 and
MNOK 1,2 in the corresponding period of 2006.
Balance sheet and cash flow statement
Net current assets defined as non-interest bearing
current assets less non-interest bearing current
liabilities was at 30 June 2007 MNOK 12,6
which is an increase from MNOK 5,3 at the end
of the same period in 2006.
The net interest bearing debt was MNOK 24,9 at
30 June 2007, compared with MNOK 6,3 in the
corresponding period of 2006. The increase is
mainly related to the acquisition of Sepo AS and
the investment in office and warehouse facilities
in Egersund.
Cash and unused cash facilities at 30 June 2007
was MNOK 18,8, of which MNOK 3,0 was
unused cash facilities.
Total assets and equity amounted to MNOK 21,6
and MNOK 43,1, respectively, as of June 30
2007, implying an equity ratio of 35,5%. The
corresponding figures at year end 2006 were
MNOK 88,0 and MNOK 36,7, implying a equity
ratio of 41,8%.

Etman International ASA Accounts for 2q 2007
Outlooks
Etman is considered to be well positioned in a
market experiencing high activity in 2007.
The company will focus on efforts towards the
professional electrical market by establishing
the first Etman "Proff outlet" in Trondheim
during the 3rd quarter of 2007. The
establishment will be the platform of the
company for further development in this
direction.
The company expects 2007 to be a year of
profitable growth, and will further pursue
opportunities from non-organic growth.
Egersund 27 Aug 2007
Board of Directors – Etman International ASA
For further information pls. contact:
Tommy Fjelde, Chief Executive Officer
Etman International ASA
Tel: +47 51 46 45 70
E-mail: tommy.fjelde@etman.no
Etman International ASA is a Norwegian holding
company for four subsidiary companies located in
China, Norway and Sweden. ETM Electrical Co. Ltd.,
is the groups manufacturing site in China, while the
three others, Etman Distribusjon AS, Sepo AS, and
Etmas AB, represent the group’s distribution channels
in Scandinavia.
Etman’s production plant is located in Changzhou
approximately 180 km west of Shanghai. The company
has 330 employees, and the largest external customers
are IKEA, Brennenstuhl, and Carrefour. ETM produces
electrical articles, plastic components, and cables
according to current standards in the European market.
The company holds all necessary product certificates
from Nemko/Semko as approval authority.
Etman's vision is to become a leader in the
manufacturing and distribution of electrical &
electronic articles, building on the ability to supply
high quality products at competitive prices.

Etman International ASA
INCOME STATEMENT 30.6.07 - UNAUDITED
(Amounts in NOK 1000)
Group
Period Period Accumulated Accumulated
Note 2nd Q 2007 2nd Q 2006 2nd Q 2007 2nd Q 2006 Total 2006
Revenue 30 173 16 892 59 749 39 916 93 694
Other operating income 86 112 151 184 712
Total revenue 3 30 259 17 005 59 900 40 100 94 406
0 0
Changes in stock of work in progress and finished goods -2 896 1 282 -6 284 1 432 401
Raw materials and consumables used 22 179 11 035 45 846 25 672 66 459
Payroll expense 4 891 2 116 8 602 4 620 10 713
Depreciation 728 -17 1 463 792 3 058
Amortization of intangible fixed assets 826 446 1 378 915 1 743
Other operating expenses 4 500 2 966 8 038 5 306 8 167
Total operating expenses 3 30 229 17 829 59 043 38 737 90 541
Result of operations 30 -824 857 1 362 3 865
Other interest received 111 62 136 100 184
Other financial income 227 50 441 198 578
Other interest expense 642 171 1 039 358 963
Other financial expense 374 82 434 216 423
0 0
Profit before taxes -649 -965 -39 1 085 3 241
Tax on ordinary result -282 -129 -129 -65 1 168
Result of the year -367 -836 90 1 150 2 074
Earnings per share 5 -0,02 -0,04 0,00 0,05 0,10
Diluted earnings per share 5 -0,02 -0,04 0,00 0,05 0,10

Etman International ASA
Balance Sheet at 30.06.07 - UNAUDITED
(Amounts in NOK 1000)
Group
ASSETS Note 30.06.2007 30.06.2006 31.12.2006
Fixed assets
Intagible fixed assets
Customers relations, land rights and goodwill 2 39 980 20 436 20 254
Deferred tax asset 400 342 201
Total intangible fixed assets 40 380 20 778 20 455
Tangible fixed assets
Land, buildings and other property 16 589 10 766 16 172
Machinery and plant 3 988 5 786 4 006
Fixtures and fittings, tools, office machinery etc. 1 820 1 590 1 559
Total tangible fixed assets 22 397 18 142 21 736
Current assets
Stock 18 849 11 534 12 565
Debtors
Trade debtors 15 672 10 352 21 152
Other debtors 8 551 4 521 3 563
Total debtors 24 224 14 872 24 715
Bank, deposits, cash in hand etc. 15 740 8 483 8 490
Total current assets 58 813 34 889 45 769
TOTAL ASSETS 121 590 73 809 87 960

Etman International ASA
Balance Sheet at 30.06.07 - UNAUDITED
(Amounts in NOK 1000)
Group
EQUITY AND LIABILITIES Note 30.06.2007 30.06.2006 31.12.2006
EQUITY
Paid in capital
Share capital 2 24 195 22 445 22 445
Own shares -1 079 -1 229 -1 079
Share premium reserve 2 19 458 14 208 14 208
Other paid in equity 1 209 759 1 209
Total paid in equity 43 783 36 183 36 783
Retained earnings
Reserve for valuataion variances
Other equity -629 -1 839 -47
Total retained earnings -629 -1 839 -47
Total equity 43 154 34 344 36 736
LIABILITIES
Long-term provisions
Deferred tax 7 391 3 566 3 156
Total provisions 7 391 3 566 3 156
Other long-term liabilities
Liabilities to financial institutions 2,4 17 800 1 300 4 900
Total long-term liabilities 17 800 1 300 4 900
Current liabilities
Liabilities to financial institutions 22 879 13 510 18 704
Trade creditors 23 471 15 456 17 125
Tax payable 772 1 337 1 692
Public duties payable 1 489 215 1 470
Other short-term liabilities 4 635 4 080 4 176
Total current liabilities 53 245 34 598 43 168
Total liabilities 78 436 39 464 51 224
TOTAL EQUITY AND LIABILITIES 121 590 73 809 87 960

Etman International ASA
Cash flow statement - UNAUDITED
(Amounts in NOK 1000)
Group
Cash flow statement 30.06.2007 30.06.2006 31.12.2006
Pretax result 90 1 150 3 241
Tax paid (2 542) (545) (1 594)
Currency translation differences (286) (1 279) (853)
Depreciation and amortizations 2 841 1 707 4 801
Change in inventory (6 284) 1 432 401
Change in accounts receivable from customers 5 479 4 467 (6 333)
Change in accounts payable to suppliers 6 345 (1 430) 240
Change in other accruals (3 713) (5 230) (175)
Net cash flow from operational activities 1 930 273 (272)
Payments made/received regarding fixed assets (17 851) (8 512) (16 833)
Change in financial investments 0 0 (0)
Net cash flow from investment activities (17 851) (8 511) (16 833)
Change in long term debt 12 900 (200) 3 400
Change in overdrafts 4 175 787 5 981
New Equity 7 000 0 600
Interest paid (1 039) (358) (963)
Interest received 136 100 184
Net cash flow from financing activities 23 172 329 9 203
Net change in cash in hand and cash equivalent 7 250 (7 910) (7 902)
Cash in hand and cash equivalent at period start 8 490 16 393 16 393
Cash in hand and cash equivalent at period end 15 740 8 483 8 490

Share capital
Equity pr 31.12.2006 22 445
Share
Premium
reserve
14 208
Other paid
in capital Own shares Other equity Total
1 209 -1 079
-47 36 736
New share capital 1 750 5 250
Currency translation differences -672
Result 2007 1st half 90
Equity pr 30.06.2007 24 195
19 458
The new equity is related to the partly compensation to the previous owner of Sepo AS.
Share capital
Equity pr 31.12.2005 22 445
Share
Premium
reserve
14 208
1 209
-1 079
-629
7 000
-672
90
43 154
Other paid
in capital Own shares Other equity Total
759 -1 229 -1 266 34 917
Currency translation differences -1 723
Result 2006 1st half 1 150
Equity pr 30.06.2006 22 445
Change in equity Statement - Unaudited
Amounts in NOK 1000
14 208
759
-1 229
-1 839
-
-1 723
1 150
34 344

Etman International Group
Notes for 2 q 2007 - unaudited
Note 1 Accounting principles
Note 2 Acquisitions
Notes to the accounts for 2 q 2007
The Etman Group has prepared the interim financial statement in full accordance with IAS 34 published by the International Accounting
Standards Board.
The interim financial statement do not include all the information and disclosures required in the annual financial statements, and should be
read in conjunction with the financial statements as at 31 December 2006.
The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of
the financial statements for the year ended 31 December 2006.
Effective from March 1st 2007, Etman International AS aquired 100% of the shares in the company Sepo AS located in Trondheim,
Norway for MNOK 17. MNOK 10 of the acquistion price was in cash, while the remaining MNOK 7 was settled in shares in Etman
International AS (1.750.000 shares). The equity in Sepo AS at March 1st 2007 was KNOK 250 resulting in an excess value of KNOK
16.750. KNOK 11.943 of the excess value has been allocated to value of customer relationsships, while the remaining KNOK 4.807 is
allocated to goodwill.
Pro forma figures including Sepo AS Period Period Accumulated Accumulated
2007 2 q 2006 2 q 2007 2 q 2006 2 q 2006 Total
Total revenue 30 334 24 493 65 882 55 996 128 011
Result of operations 29 -292 1 096 3 347 6 580
Result of the year -367 -926 196 1 907 3 396
The pro forma financial information has been prepared for illustrative purposes only to show the hypthetical effects of the aquistion of Sepo
AS on the group accounts as if the acquistion had taken place 01.01.2006. The figures from SEPO AS has been restated to IFRS
Note 3 Segment information
Amounts in 1000 NOK
Business segments
Period 2007 2nd quarter Period 2006 2nd quarter
Professional DIY Total Professional DIY Total
Segment sales 9 785 20 474 30 259
4 153 12 852 17 005
Segment Cost of sales 5 825 15 121 20 947
2 301 10 601 12 901
Segment Operating cost 4 609 4 673 9 283
1 566 3 362 4 927
Segment operational result -649 679 30
287 -1 111 -824
Accumulated 2007 2nd quarter
Accumulated 2006 2nd quarter
Professional DIY Total Professional DIY Total
Segment sales 17 122 42 778 59 900
9 660 30 439 40 100
Segment Cost of sales 10 125 32 544 42 669
5 093 24 377 29 470
Segment Operating cost 7 390 8 984 16 374
3 179 6 089 9 267
Segment operational result -393 1 250 857
1 389 -26 1 362
Professional
2006 Total
DIY Total
Segment sales 19 071 75 335 94 406
Segment Cost of sales 11 028 58 000 69 029
Segment Operating cost 6 329 15 184 21 513
Segment operational result 1 713 2 151 3 865

Etman International Group
Geographical segments
Notes to the accounts for 2 q 2007
The business segment DIY ("Do-It-Yourself"), consists of products which the end customer can install, mainly sold through chain stores.
In the professional segment the customers are mainly authorized electroinstallers. The products to this market includes the products to
the DIY market as well as extended range of special products for the professional market.
There are no internal sales between the segments.
The segment figures are based on product calculations including direct and indirect cost elements. This means that the cost in the
segment cost of sales contains cost elements like direct and indirect salaries, depreciation of production related assets etc. These costs
are not presented as cost of goods sold in the financial statement, but as other operating expenses.
At 30.6.2007 3.107 knok was presented as cost of goods sold in this note, but as other operating expenses in the financial report.
The corresponding figure in 2006 was 2.366 knok.
Scandinavia Europe China Total
Segment Sales 2007 period 2nd quarter 20 247 5 512 4 500 30 259
Segment Sales 2006 period 2nd quarter 10 913 3 250 2 842 17 005
Segment Sales 2007 accumulated 2nd quarter 37 158 12 173 10 570 59 900
Segment Sales 2006 accumulated 2nd quarter 23 499 8 750 7 851 40 100
Segment Sales 2006 total 51 650 20 147 22 609 94 406
Note 4 Financial debt
The group interest-bearing financial debt has been increased by 10 mill NOK in connection with the acquisition of Sepo A/S. An additional 4
mill NOK has been drawn on the construction loan of Etman Distribution AS in 2007, while installment of 1.1 mill has been paid of the long
term loans.
Note 5 Earnings per share
(amounts in 1000 NOK)
Number of shares outstanding 24 195 218
- Own shares 1 079 438
Number of ordinary shares outstanding 23 115 780
Ordinary profit/ net income -367
Weighted average number of ordinary shares 23 115 780
Earnings per share (NOK) -0,02
Diluted earnings per share -0,02
The value of the 230.000 share options is insignificant.
30.6 2007 30.6 2006 31.12.2006
22 445 218
1 229 438
21 215 780
22 445 218
1 229 438
21 215 780
Period Period Accumulated Accumulated
2nd q 2007 2nd q 2006 2nd q 2007 2nd q 2006 31.12.2006
-836
21 215 780
-0,04
-0,04
90
22 758 045
0,00
0,00
1 150
21 215 780
0,05
0,05
2 074
21 215 780
0,10
0,10

Etman International Group
Note 6 - Conversion NGAAP - IFRS
(Amounts in NOK 1000)
Notes to the accounts for 2 q 2007
The group has as from 01.01.2005 converted from Norwegian good accounting practice (NGAAP) to International Financial
Reporting Standards (IFRS), see accounting principles note.
A difference between previous accounts according to NGAAP and IFRS has been identified, as the classification of excess
values related to the purchase of Wolfram AS in 2004 (Now Etman Distribusjon AS).
According to NGAAP this excess value was totally allocated to goodwill. According to IFRS this is reclassified as value of
customers relationship. Deferred tax is calulated according to IFRS.
The effects of the conversion are shown in tables below
Profit and Loss 2006 2nd quarter NGAAP Change
IFRS
Total sales 40 100
Cost of goods sold 27 104
Salaries & social cost 4 620
Depreciation and amortization 1 707
Other operating costs 5 306
Total operating expenses 38 737
Result of operations 1 362
Net financial expenses (277)
Profit before taxes 1 085
Taxes 141
Result of the year 944
(1) Related to deferred tax on depreciation of customers relationshi
-
-
-
-
(206)
206
40 100
27 104
4 620
1 707
5 306
38 737
1 362
(277)
1 085
(1) (65)
Balance pr 30 June 2006 NGAAP Change
IFRS
Fixed assets
Intangible fixed assets
Deferred tax asset 342
Customer relations 6 128
Land rights 2 716
Goodwill 8 024
Total intangible assets 17 209
Tangible fixed assets
Total tangible fixed assets 18 142
Total fixed assets 35 351
Current assets
Inventory 11 534
Dedtors
Total Debtors 14 872
Bank, Deposits, cash 8 483
Total current assets 34 889
Total assets 70 240
(1) Excess value related to customers relationship
(2) reclassification of goodwill to customers relationshi
1 150
11 592 (1)
342
17 720
2 716
(8 024) (2) (0)
3 568
20 777
3 568
-
3 568
18 142
38 919
11 534
14 872
8 483
34 889
73 808

Etman International Group
Balance pr 30 June 2006
Equity
Paid in Capital
Total paid in capital 36 183
Retained earnings
Other Equity (2 045)
Total Equity 34 138
Debt
Long term debt
Debt to financial institutions 1 300
Deferred tax 204
Total long term debt 1 504
Short term debt
Trade creditors 15 456
Overdraft 13 510
Public duties 215
Tax payable 1 337
Other short term debt 4 080
Total short term debt 34 598
Total debt & Equity 70 240
(1) Result effect of change deferred taxes related to depreciation of customers relationsh
(2) Deferred tax telated to customers relationship
206
206
3 362
3 362
-
3 568
Notes to the accounts for 2 q 2007
36 183
(1) (1 839)
34 344
1 300
(2) 3 566
4 866
Equity reconceliation NGAAP Change
IFRS
Equity pr 01.01.2006 34 506
Sales own shares -
Min. Interests corrected -
Currency deviations (1 311)
Result of the year 944
Calculated Equity pr 30.6.2006 34 139
Actual Equity pr 30.06.2006 34 138
412
(412)
206
206
206
15 456
13 510
215
1 337
4 080
34 598
73 809
34 917
(1 723)
1 150
34 344
34 344