2007 - Etman Distribusjon

Quarterly Report 4 Q
2007
Etman International ASA
27.02.2008
English version

Etman International ASA Accounts for 4q 2007
Highlights
• The company was listed on Oslo Axess 11.10.2007.
• The growth in turnover was 49% in 2007 compared with 2006, with turnover
reaching MNOK 140,6. The main reason being the acquisition of Sepo AS the 1 st of
March 2007, and increased sales from ETM Electrical Co. Ltd to Scandinavia and
Europe.
• Result of operations (EBIT) in 2007 was MNOK 0,0 after the result has been
charged with MNOK 4,1 related to the Oslo Axess listing. Corresponding period of
2006 the result was MNOK 3,9. In addition to the listing costs the decrease was
mainly due to increase of sales and administration costs related to the subsidiary
Sepo AS, and the strengthening of the administration functions in the parent
company, Etman International ASA.
• Total assets and equity amounted to MNOK 120,3 and MNOK 42,2 respectively,
implying an equity ratio of 35,1%.
Key Figures - Unaudited
Period Period Accum. Accum. Change
2006-
2007 Q4 2006 Q4 2007 Q4 2006 Q4 2007
Total
2006
Revenue (MNOK) 43,4 33,5 140,6 94,4 49,0 % 94,4
Result of operations - EBIT (MNOK) 1,2 1,3 0,0 3,9 -99,8 % 3,9
Profit before taxes (MNOK) 0,5 1,2 -1,9 3,2 -158,0 % 3,2
Result of the period (MNOK) 1,0 0,0 -0,5 2,1 -126,2 % 2,1
Net cash flow from operations (MNOK) 3,0 2,1 0,7 -0,3 -345,8 % -0,3
Cash and cash equivalents (MNOK) 12,4 8,5 45,9 % 8,5
Number of employees end of period 394,0 342,0 15,2 % 342,0
Chinese employees end of period 370,0 334,0 10,8 % 334,0
Result per share (NOK) 0,04 0,00 -0,02 0,10 -124,3 % 0,10
EBIT margin 2,8 % 3,8 % 0,0 % 4,1 % 4,1 %
Equity ratio 35,1 % 41,8 % 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 was listed on Oslo Axess 11 th
October 2007 as a part of the process to
facilitate access to human- and financial
resources and for further development of the
group.
Financial result and operations
Operating revenues were MNOK 140,6 in
2007, which is up 49% from 2006. The result
of operations of 2007 was MNOK 0,0 after the
result has been charged with MNOK 4,1
related to the Oslo Axess listing.
Summary
In 2006 the result was MNOK 3,9. Addition to
the listing cost the main reason for the drop in
result is increase in sales- and administration cost
related to the subsidiary Sepo AS, and the
strengthening of administration functions in the
parent company. A temporary reduction in
margins is also experienced in the restructuring
of the group.
Profit before taxes was MNOK -1,9 in 2007
compared with MNOK 3,2 in 2006.
Net profit after allowing for calculated taxes was
MNOK -0,5 for 2007 and MNOK 2,1 in 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 31 Dec 2007 MNOK 15,0
which is an increase from MNOK 12,8 at the end
of the same period of 2006.
The net interest bearing debt was MNOK 27,4 at
31 Dec 2007, compared with MNOK 15,1 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 31 Dec 2007
was MNOK 13,0 of which MNOK 0,6 was
unused cash facilities and MNOK 8,5
was restricted cash.
Total assets and equity amounted to
MNOK 120,3 and MNOK 42,2, respectively, as
of 31 Dec 2007, implying an equity ratio of
35,1,9%. 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 4q 2007
Outlooks
Etman is considered to be well positioned in a
market experiencing high activity in 2007.
The company is focusing on efforts towards
the professional electrical market and sales
agreements with significant customers has
been established primo 2008.
The first Etman "Proff outlet" will be
established in Trondheim during the 1 st
quarter of 2008. The establishment will be the
platform of the company for further
development in this direction. This
establishment has been slightly delayed
according to previous plans.
The company expects 2007 to be a year of
profitable growth, and will further pursue
opportunities from non-organic growth.
Egersund 27 Feb 2008
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 31.12.07 - Unaudited
(Amounts in NOK 1000)
Group
Period Period Accumulated Accumulated
Note 4th Q 2007 4th Q 2006 4th Q 2007 4th Q 2006
Revenue 43.198 33.170 140.285 93.694
Other operating income 178 280 348 712
Total revenue 3 43.376 33.450 140.633 94.406
Changes in stock of work in progress and finished goods 991 3.150 -5.946 401
Raw materials and consumables used 28.075 25.277 99.278 66.459
Payroll expense 5.998 3.464 20.052 10.713
Depreciation 615 451 2.730 3.058
Amortization of intangible fixed assets 824 415 3.028 1.743
Stock exchange listing cost 526 0 4.104 0
Other operating expenses 5.124 -572 17.378 8.167
Total operating expenses 3 42.154 32.185 140.624 90.541
Result of operations 1.223 1.265 8 3.865
Other interest received 369 71 685 184
Other financial income 101 364 997 578
Other interest expense 821 356 2.705 963
Other financial expense 361 104 865 423
Profit before taxes 511 1.239 -1.880 3.241
Tax on ordinary result -493 1.219 -1.338 1.168
Result of the year 1.004 20 -543 2.073
Earnings per share 5 0,04 0,00 -0,02 0,10
Diluted earnings per share 5 0,04 0,00 -0,02 0,10

Etman International ASA
Balance Sheet at 31.12.07 - Unaudited
(Amounts in NOK 1000)
ASSETS Note
Group
31.12.2007 31.12.2006
Fixed assets
Intagible fixed assets
Customers relations, land rights and goodwill 2 37.946 20.254
Deferred tax asset 1.546 201
Total intangible fixed assets 39.492 20.455
Tangible fixed assets
Land, buildings and other property 15.971 16.172
Machinery and plant 4.157 3.975
Fixtures and fittings, tools, office machinery etc. 1.820 1.590
Total tangible fixed assets 21.948 21.736
Current assets
Stock 18.511 12.565
Debtors
Trade debtors 22.009 21.152
Other debtors 5.985 3.563
Total debtors 27.994 24.715
Bank, deposits, cash in hand etc. 12.390 8.490
Total current assets 58.894 45.769
TOTAL ASSETS 120.333 87.960

Etman International ASA
Balance Sheet at 31.12.07 - Unaudited
(Amounts in NOK 1000)
Group
EQUITY AND LIABILITIES Note 31.12.2007 31.12.2006
EQUITY
Paid in capital
Share capital 2 24.364 22.445
Own shares -669 -1.079
Share premium reserve 2 19.736 14.208
Other paid in equity 1.326 1.209
Total paid in equity 44.757 36.783
Retained earnings
Reserve for valuataion variances
Other equity -2.521 -47
Total retained earnings -2.521 -47
Total equity 42.236 36.736
LIABILITIES
Long-term provisions
Deferred tax 6.854 3.156
Total provisions 6.854 3.156
Other long-term liabilities
Liabilities to financial institutions 2,4 16.200 4.900
Total long-term liabilities 16.200 4.900
Current liabilities
Liabilities to financial institutions 23.545 18.704
Trade creditors 23.687 17.125
Tax payable 917 1.692
Public duties payable 2.353 1.470
Other short-term liabilities 4.542 4.176
Total current liabilities 55.043 43.168
Total liabilities 78.097 51.224
TOTAL EQUITY AND LIABILITIES 120.333 87.960

Etman International ASA
Cash flow statement 31.12.07 - Unaudited
(Amounts in NOK 1000)
Group
Cash flow statement 31.12.2007 31.12.2006
Pretax result (1.880) 3.241
Tax paid (2.867) (1.594)
Currency translation differences (532) (853)
Depreciation and amortizations 5.758 4.801
Change in stock (5.946) 401
Change in trade debtors (857) (6.333)
Change in trade creditors 6.561 240
Change in other accruals 432 (175)
Net cash flow from operational activities 669 (272)
Payments made/received regarding fixed assets (19.008) (16.833)
Net cash flow from investment activities (19.009) (16.833)
Change in long term debt 11.300 3.400
Change in overdrafts 4.841 5.981
New Equity 8.118 600
Interest paid (2.705) (963)
Interest received 685 184
Net cash flow from financing activities 22.239 9.203
Net change in cash in hand and cash equivalent 3.899 (7.902)
Cash in hand and cash equivalent at period start 8.490 16.393
Cash in hand and cash equivalent at period end 12.390 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 capital 1.919 5.528 117 410
Currency translation differences -1.931
Result 2007 -543
Equity pr 31.12.2007 24.364
19.736
The new capital is related to the partly compensation to the previous owner of Sepo AS, share issue related to the OSE listing and
shares to employees.
Share capital
Equity pr 31.12.2005 22.445
Share
Premium
reserve
14.208
1.326
-669
-2.521
7.974
-1.931
-543
42.236
Other paid
in capital Own shares Other equity Total
759 -1.229 -1.266 34.917
Sales own shares 450 150
Currency translation differences -855
Result 2006 2.073
Equity pr 31.12.2006 22.445
Change in equity Statement - Unaudited
Amounts in NOK 1000
14.208
1.209
-1.079
-47
600
-855
2.073
36.736

Etman International Group
Notes for 4th Q 2007 - unaudited
Note 1 Accounting principles
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.
Note 2 Acquisitions
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 4 q 2006 4 q 2007 4 q 2006 4 q 2006 Total
Total revenue 41.751 44.029 144.990 128.011 128.011
Result of operations 768 2.455 -208 6.580 6.580
Result of the year 549 1.111 -764 3.396 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
Notes to the accounts for 4 q 2007
Period 2007 4th quarter Period 2006 4th quarter
Professional DIY Total Professional DIY Total
Segment sales 13.804 29.573 43.376
4.829 28.621 33.450
Segment Cost of sales 9.327 21.220 30.547
3.597 22.263 25.860
Segment Operating cost 4.132 7.475 11.607
1.513 4.812 6.325
Segment operational result 345 877 1.223
-281 1.546 1.265
Accumulated 2007 4th quarter
Accumulated 2006 4th quarter
Professional DIY Total Professional DIY Total
Segment sales 40.014 100.618 140.633
19.071 75.335 94.406
Segment Cost of sales 24.933 74.777 99.711
11.028 58.000 69.028
Segment Operating cost 16.075 24.839 40.914
6.329 15.184 21.513
Segment operational result -994 1.002
8
1.713 2.151 3.865
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
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 31.12.2007 6.378 knok was presented as cost of goods sold in this note, but as other operating expenses in the financial report.
The figure in the corresponding period in 2006 was 6.615 knok.
Geographical segments
Scandinavia Europe China Total
Segment Sales 2007 period 4th quarter 29.703 6.091 7.583 43.376
Segment Sales 2006 period 4th quarter 20.946 5.397 7.107 33.450
Segment Sales 2007 accumulated 4th quarter 90.006 25.957 24.669 140.633
Segment Sales 2006 accumulated 4th quarter 51.650 20.147 22.609 94.406
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.
Installments of 2.7 mill NOK has been paid of the long term loans in Norway, and an amount corresponding to 2.3 mill NOK of short term
bank loans has been paid in China.
Note 5 Earnings per share
(amounts in 1000 NOK)
Number of shares outstanding 24.364.218
- Own shares 669.438
Number of ordinary shares outstanding 23.694.780
Ordinary profit/ net income 1.004
Weighted average number of ordinary shares 23.394.916
Earnings per share (NOK) 0,04
Diluted earnings per share 0,04
The value of the 230.000 share options is insignificant.
Notes to the accounts for 4 q 2007
31.12 2007 31.12 2006 31.12.2006
22.445.218
1.079.438
21.365.780
22.445.218
1.079.438
21.365.780
Period Period Accumulated Accumulated
4th q 2007 4th q 2006 4th q 2007 4th q 2006 31.12.2006
20
21.365.780
0,00
0,00
-543
23.008.740
-0,02
-0,02
2.073
21.365.780
0,10
0,10
2.073
21.365.780
0,10
0,10

Etman International Group
Note 6 - Conversion NGAAP - IFRS
(Amounts in NOK 1000)
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 IFS 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 4th quarter NGAAP Change IFRS
Total sales 94.406
Cost of goods sold 66.861
Salaries & social cost 10.713
Depreciation and amortization 4.801
Other operating costs 8.167
Total operating expenses 90.541
Result of operations 3.865
Net financial expenses (624)
Profit before taxes 3.241
Taxes 1.580
Result of the year 1.662
(1) Related to deferred tax on depreciation of customers relationship
-
-
-
-
(412)
412
Notes to the accounts for 4 q 2007
94.406
66.861
10.713
4.801
8.167
90.541
3.865
(624)
3.241
(1) 1.168
Balance pr 31 Dec 2006 NGAAP Change IFRS
Fixed assets
Intangible fixed assets
Deferred tax asset 201
Customer relations 6.682
Land rights 2.716
Goodwill 7.288
Total intangible assets 16.887
Tangible fixed assets
Total tangible fixed assets 21.736
Current assets
Inventory 12.565
Dedtors
Total Debtors 24.715
Bank, Deposits, cash 8.490
Total current assets 45.769
Total assets 84.392
(1) Excess value related to customers relationship
(2) reclassification of goodwill to customers relationship
2.073
10.856 (1)
201
17.538
2.716
(7.288) (2) -
3.568
20.455
-
3.568
21.736
12.565
24.715
8.490
45.769
87.960

Etman International Group
Balance pr 31 Dec 2006
Equity
Paid in Capital
Total paid in capital 36.783
Retained earnings
Other Equity (459)
Min. Interest -
Total Equity 36.324
Debt
Long term debt
Debt to financial institutions 4.900
Deferred tax -
Total long term debt 4.900
Short term debt
Trade creditors 17.125
Overdraft 18.704
Public duties 1.470
Tax payable 1.692
Other short term debt 4.176
Total short term debt 43.168
Total debt & Equity 84.392
(1) Result effect of change deferred taxes related to depreciation of customers relationship
(2) Deferred tax telated to customers relationship.
412
412
3.156
3.156
-
3.568
Notes to the accounts for 4 q 2007
36.783
(1) (47)
-
36.736
4.900
(2) 3.156
8.056
Equity reconceliation NGAAP Change
IFRS
Equity pr 01.01.2006 34.506
Sales own shares 600
Min. Interests corrected -
Currency deviations (443)
Result of the year 1.662
Calculated Equity pr 31.12.2006 36.324
Actual Equity pr 31.12.2006 36.324
412
(412)
412
412
412
17.125
18.704
1.470
1.692
4.176
43.168
87.960
34.917
600
(855)
2.073
36.736
36.736