Helvar Merca Group 2003 - Fastems

Annual Report
Helvar Merca Group 2003

Contents
Helvar Merca Group......................................4
Key Figures....................................................5
Fastems Customer Service .............................6
Fastems Manufacturing ..................................8
Helvar .........................................................10
Helvar Lighting Control ..............................12
Board of Directors’ Report ..........................14
Financial Statements ....................................16
Associated Groups .......................................20
Addresses .....................................................22

4
Helvar Merca Group
Group business units
Fastems
Fastems is an expert in factory automation. The
company builds automation systems, based on
customer requirements, that enable full use of
the production resources during all 8 760 hours
in a year. The company has its own customer
service offi ces in Germany, Sweden, England,
France and Italy.
Helvar Components
Helvar is one of Europe’s leading manufacturers
of lighting ballasts and lighting
controls. Customers and partners include
lighting manufacturers and dealers, consultants
and lighting designers as well as electrical
contractors. Through co-operation with the
various parties, Helvar provides end-users with
high quality lighting solutions for both interior
and exterior use.
Helvar
Lighting Control
Helvar Lighting Control (HLC) offers its
customers and partners the products and
systems that are used to create the lighting
solutions which address the demands of
designers and customers. The company’s own
design and product development staff support
the product range and, as a result, HLC can
offer customised lighting control solutions
utilising the latest technology.

Key Figures
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Turnover, € million 161 128 110
Change over previous year, % -20.7 -13.8
Operating result, € million 13 -4 3
Profi t after fi nancing items, € million 13 -4 2
Shareholders’ equity and minority holding, € million 37 25 29
Balance sheet total, € million 101 100 83
Capital employed, € million 73 64 62
Return on investment (ROI), % 18.0 -1.5 5.6
Return on equity (ROE), % 23.0 -11.0 3.4
Solidity, % 37 28 35
Gearing 27 1 13
Quick ratio 1.9 1.4 2.3
Gross investment, € million 5.1 3.5 1.6
Staff 31 December 724 556 517
Result before extraordinary items, provisions and taxes
+ interest costs and other fi nancial expenses
Return on investment (ROI), % = x 100
Balance sheet total - interest-free loans (average during the year)
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Result before extraordinary items, provisions and taxes - taxes for the fi nancial period
Return on equity (ROE), % = x 100
Capital and reserves + minority holding (average during the year)
Capital and reserves + minority holding
Solidity, % = x 100
Balance sheet total - advances received
Loans with interest - cash, bank accounts and fi nancial stock
Gearing = x 100
Capital and reserves + minority holding
Quick ratio =
Financial assets
Current liabilities
5

6
Fastems Customer Service
The company continued its rapid international expansion. More
than 90 % of sales of the automation products were exported to
15 different countries. European machine tools markets contracted
for the second year in succession. However, Fastems’ turnover
increased by 10 % to EUR 44.3 million. Profi t was signifi cantly
up on the previous year.
Turnover
2001 – 2003, € million
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In 2003 Fastems Customer Service and
Manufacturing were separated into two units.
The Fastems PQC (Paper Quality Control
Components) division continues to operate
as a separate entity, developing and delivering
scanners for installation in quality control
systems for paper machines.
Fastems is an expert in factory automation,
especially for the metal cutting industry. The
company supplies automation systems, based on
customised requirements that enable the clients
to make full use of their production resources
during all 8 760 hours in a year. The company
has its own customer service offices in Germany,
Sweden, England, France and Italy. In the United
States, Fastems USA operates in co-operation
with Gosiger Inc. whose headquarters are in
Dayton, Ohio. Gosiger has 11 customer service
centres throughout the USA.
Fastems is Finland’s market leader in
milling machinery and provides customers
with total solutions in automation and robotics.
The major imported equipment includes
Fanuc Ltd’s robots and injection moulding
machines as well as machine tools from
Daewoo Heavy Industries Ltd., Deckel Maho
Gildemeister Vertriebs und Service GmbH and
SORALUCE, S.COOP.
Local presence is a vital part of customer
service. To this end Fastems has built up its
own customer service network which gives
customers fast service in their native language.
In 2003 Fastems introduced a Full service
Jarmo Hyvönen
Managing Director
concept through which it takes total responsibility
for keeping the customer’s machines and
equipment operating, this as a complement
to normal maintenance work already offered.
The first Full service agreement was signed in
October 2003 with the Finnish machine tool
manufacturer Finn-Power Oy.
In addition to service centres located close
to the customer, the company actively searches
out solutions for continuously enhancing its
customer-focused way of working. The Fastems
Quality Time Club ensures that customers can
fully trust the supplier and can therefore concentrate
on developing their own businesses.
At the same time, the customers can be certain
that their views are heard and that they are
always delivered equipment and services of the
highest quality. Fastems’ quality assurance system
is based on ISO 9001:2000 standards. The
results of a customer satisfaction survey carried
out in 2003 demonstrated that the Fastems way
of working is the right one.
The major customer event of 2003 was the
EMO Fair in Milan in October with around
155 000 visitors. At the Fair, Fastems presented
three new product developments: a flexible
palleting system called the FPC (Flexible Pallet
Container), the DBL robot deburring cell and
Fastem’s latest FMS Flexible Manufacturing
System. Over 350 of the company’s Flexible
Manufacturing Systems have already been sold
in Europe and the USA.

Man and
machine working
in harmony
ensures a
competitive edge.
Local presence is vital to customer service.
The aim of all development work
is to create solutions that are easy
to use.
With its Full service concept, Fastems takes responsibility
for ensuring that machines and equipment stay operational.
7

8
Fastems Manufacturing
The Fastems Manufacturing unit focused on quality improvements
and enhanced delivery processes. Production volumes failed to increase
due to an unstable market situation, however, the profi tability
improved.
Fastems is the leading manufacturer of fl exible
manufacturing systems (FMS). The high
technical quality of the products is one of the
cornerstones of the company’s operations.
Fastems’ systems are increasingly being used in
the manufacture of components for the automotive
industry. Serial production places some
challenging demands on the dependability of
such systems. Fastems is the only manufacturer
in the world that is an Open System Integrator,
designing and delivering all components itself
- from software through to hardware.
The team organisation was restructured in
2003 to enhance the quality of its operations.
Central to all the development work was to
improve the level of quality perceived by the
customer, the most notable aspects of which
have been improvements in internal communication
and reporting. For the customer this
means shorter response times to queries and a
greater response to their needs.
The Open Integrator operating model
adopted by Fastems presents ongoing challenges
when working with all the machine tool
suppliers and manufacturers. Both sales and
project management systems have been built
to support confidential partnerships and efficient
logistics. Nearly all system deliveries are
exported. Successful deliveries and installations
prove the functionality of the project management
system.
The FPC (Flexible Pallet Container) product
line, started in 2000, has doubled its output
every year. FPC products are simple, flexible
manufacturing (FMS) systems but they are
container-sized and easy to move and to install.
The concept is Fastems’ solution for customers
needing to improve the flexibility of their
manufacturing processes, which is complicated
by the limited mobility of their machinery.
Fastems is a global pioneer in the manufacture
of system control. The latest version,
3.0, of the MMS control software was launched
at the EMO Fair in Milan. This is further
evidence of Fastems’ continuing development
program. Of the 350 systems delivered
by Fastems, more than 200 are equipped with
MMS control software.
Outlook for 2004
Fastems’ profi tability is sound as is the outlook
for 2004. Despite the deterioration in the market
situation, turnover is expected to remain
stable. The company’s aim is increased market
share and continued international expansion.
Investment in product development will continue
with the goal of creating new solutions
for customers and improving the performance
of existing products.

The DBL robot deburring cell was on
display at the EMO exhibition in Milan.
With its compact design and quick
installation, the Flexible Pallet
Container system (FPC) is rapidly
replacing traditional solutions.
The modular FM-system is the Fastems product fl agship. The
components of this system are used to create customer-specifi c
applications. 350 systems were sold in 2003.
Fastems’ new Robotised
Production Cell (RPC)
is suitable for automating
materials handling of
various types of machines.
In collaboration with Metso Automation Oy, Fastems
has delivered 500 scanners for paper machines around
the world. In 2003 the next generation of products,
the Scanner Plus, was announced.
9

10
Helvar
The lighting ballasts market in Europe remained unchanged from
the previous year. Due to over-capacity in the industry, stiff competition
continued in every market segment. Turnover for the Helvar
Group remained at the previous year’s level of EUR 65.9 million.
Profi t was signifi cantly up on the year before.
Turnover
2001 – 2003, € million
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Helvar is one of Europe’s leading manufacturers
of lighting ballasts and lighting controls.
Customers and partners include lighting manufacturers
and dealers, consultants and lighting
designers as well as electrical contractors. As a
result of its co-operation with various parties,
Helvar provides the end-user with high quality,
energy-saving lighting solutions for both
interior and exterior use.
Helvar’s production facilities for ballasts are
in Karkkila in Finland and the head office is
in Helsinki. Product development, production
and marketing of lighting controls is centred
in England where Helvar Lighting Control is
located.
In 2003 Helvar continued to invest in
product development. For electronic ballasts,
investment in product development amounted
to 10 % of turnover. Helvar launched a comprehensive
range of controllable and non-controllable
ballasts for T5 lamps. A pioneer in the
industry, the company has developed a unique
concept for slim electronic ballasts. Demand for
these has been high and is expected to show
strong growth in the next few years.
In the field of magnetic ballasts, Helvar
invested in development of the product
construction, the use of new materials, and
production technology. The major investment
in 2003 was an increase in the production
capacity for ballasts for fluorescent tubes to
ensure enhanced competitiveness. Integral to
the investment were adaptations to a new EU
directive due to come into force in November
2005. This directive will bring to an end the
use of class C ballasts in new lighting fittings
Asko Kallonen
Managing Director
within the European Union. This will result
in increasing demand for class B fluorescent
ballasts.
The company’s logistic operations were
improved and, through close co-operation with
customers, solutions were sought to ensure
dependable direct deliveries from the factory.
Dependable and efficient logistics continue to
rank among Helvar’s key development objectives.
Operational processes were streamlined
further. As a result, operating costs sank significantly.
Cost savings also accrued from improvements
in production efficiency and from cuts
in general expenditure. The process of outsourcing
non-core operations continued.
Helvar’s strategy process was brought
forward through involvement of key employees
throughout the company. This process also
defined the values which determine all Helvar’s
operations – customer focus, quality and dependability,
personnel development as well as
target-orientation and profitability.
Outlook for 2004
Sales are expected to develop favourably
as economic prospects improve in Europe.
During 2004 Helvar will introduce the
EFQM ® (European Foundation of Quality
Management) assessment method with a view
to making development work in the company
more systematic. There will continue to be
signifi cant investments in the fi eld of electronic
products and the investments in personnel
training will increase.

All products are type-tested
to the toughest requirements
before being approved for
production.
Helvar’s highly automated production facilities are located in Karkkila.
Helvar low profi le T5 lighting
ballasts have surpassed all
expectations.
All the best-known
lighting manufacturers’
products feature Helvar
lighting ballasts.
Helvar products are designed
and developed in the company’s
own laboratories.
Automated surface mounting
in full swing.
Every product
is automatically
subjected to testing
on the production
line, while quality
assurance procedures
involve additional
random checks.
Continuous investments are made
in improving the effi ciency of the
production lines.
11

12
Helvar Lighting Control
Sales for Helvar Lighting Control (HLC) were up on the previous
year. Growth was infl uenced by the year’s marketing efforts
as well as by successful new launches of the DIGIDIM® and
IMAGINE® product ranges.
Helvar Lighting Control offers its customers
and partners high quality products and systems,
creating lighting environments that meet the
needs of designers and end-users. The product
range comprises total systems that can be used
in various lighting control situations, from
single rooms right up to largest cruise ships.
The product range is supported by the company’s
own design and development staff and
as a result HLC can offer customised lighting
control solutions utilising the latest technology.
IMAGINE products are generally used
in large-scale projects where the demands of
architectural lighting control are important.
Such projects include cruise ships, hotels, museums
and churches. In 2003 the already very
successful IMAGINE range was updated and
improved with the launch of the IMAGINE
Lighting Router and the IMAGINE Workshop
programming software suite.
The DIGIDIM modular product range has
been expanded and updated. DIGIDIM is best
suited to small and medium-sized installations
such as school classrooms, homes, boardrooms
and offices. The DIGIDIM range is based on
the DALI standard, is easy to install, energyefficient
and can be programmed to suit the
customer’s own requirements.
A large part of Helvar’s international
success in controls can be attributed to the use
of local lighting control experts to support its
customers. Helvar has experts situated in all its
key markets, since a local presence is critical to
maintaining high standards of customer care.
The most signifi cant lighting control installations
in 2003 were:
The Queen Anne Building,
Edinburgh Castle, Scotland
Finnkino 14 screen cinema complex,
Riga, Latvia
The Arppeanum building,
Helsinki University, Finland
Lund Cathedral, Sweden
Värmlands Museum, Karlstad, Sweden
Kreuzkirche, Dresden, Germany
RCI’s “Mariner of the Seas”
built by Kvaerner Masa-Yards, Finland
Cunard Line’s “Queen Mary 2”
built by Chantiers de l’Atlantique, France
Helvar Lighting Control has joined CEDIA
(Custom Electronic Design and Installation
Association). Member companies specialise in
planning and installing electronic systems for
residential applications providing control of
lighting, security and HVAC systems. HLC’s
fi eld of expertise is lighting control, offering
customised lighting control systems that can
be integrated with other technologies. A new
business team based in Dartford, England will
lead HLC’s pursuit of this exciting opportunity.
Outlook for 2004
Helvar Lighting Control has concentrated on
becoming more customer-focussed throughout
all of its activities in 2003 and this development
will continue in 2004. Commitment to quality,
service and continuous product development
based on the needs of its customers will ensure
steady growth in 2004.

The Queen Anne Building at Edinburgh Castle in Scottland
where an IMAGINE ® dimmer system has been installed.
Royal Promenade on Royal
Caribbean International’s
”Mariner of the Seas” built
by Kvaerner Masa-Yards in
Turku, Finland.
Helsinki University Museum in the Arppeanum building, Helsinki,
Finland.
Cunard Line’s ”Queen Mary 2” built by
Chantiers de l’Atlantique in Saint-Nazaire,
France.
The new residential dimming system DIGIDIM ®4,
a complete boxed solution.
13

14
Board of Directors’ Report
The year 2003 was the fi rst full year of operation
for the Helvar Merca Group as an industrial
concern. The Group was established in
its present form in September 2002 when the
conglomerate of the same name was divided
into four legal units.
Group structure
The Helvar Merca Group comprises the parent
company Helvar Merca Oy Ab and two business
areas: lighting components (Helvar) and
factory automation (Fastems).
The parent company Helvar Merca Oy Ab
co-ordinates group finance and administration
and governs the strategic development of the
group and its subsidiaries.
Helvar develops, manufactures and markets
lighting components. The product range
includes magnetic ballasts and electronic ballasts
for use in lighting and lighting control
electronics.
Fastems builds customer-specific automation
systems for industrial customers, particularly
in the field of engineering.
Helvar and Fastems products and solutions
are sold both through group subsidiaries
Helvarmerca AB in Sweden, Helvar Merca
GmbH in Germany, Helvar Merca Limited
in England and Helvar Merca Srl in Italy, and
through authorised dealers throughout the
world.
The subsidiary Mercantile KSB Oy Ab was
sold in January 2003.
Performance
Poor demand dogged both the lighting and
engineering industries for most of the year,
particularly in central Europe.
Turnover for the Helvar Merca Group for
the financial period 1.1.- 31.12.2003 was EUR
110.0 million. Group profit for the period
was EUR 1.0 million. Profits were reduced by
costs related to environmental sanitation in the
oil harbours of Kotka and Rauma where the
Group had previously been involved in transit
trade.
Board of Directors
The Board of the parent company comprises
Gerhard Wendt, Chairman, Dieter Aminoff,
Philip Aminoff, Stig Gustavson, Olli Riikkala
and Arthur Aminoff.
Personnel and pension commitments
The Group employed 517 staff at the end of
the year. The Group’s voluntary pension fund
commitments are covered in their entirety.
Prospects
The general trends in European industry
have considerable impact on Helvar and
Fastems. No major growth is expected for
2004. However, in 2003 both companies
demonstrated a capability of achieving positive
results even during times of recession. Helvar’s
cost-effi ciency will further improve when the
company’s head offices move to Karkkila in the
second half of 2004.
Proposal for allocation of profi t
The retained earnings available for distribution to
the shareholders amount to EUR 7 196 529.54.
The Board of Directors proposes that a
dividend of EUR 180 per share, i.e. a total of
EUR 1 443 420.00 be declared, and that the
remainder be transferred to the Company’s
retained earnings account.

Helvar Merca Group’s Board of Directors: seated left Gerhard Wendt, Chairman, and next to
him Dieter Aminoff, back row from left Philip Aminoff, Stig Gustavson, Olli Riikkala and
Arthur Aminoff.
15

16
Consolidated Profi t and Loss Account
�NET TURNOVER
Variation in stocks of fi nished goods
and work in progress
Other operating income
Raw materials and services
Staff expenses
Depreciation and reduction in value
Other operating charges
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OPERATING PROFIT
Financial income and expenses
PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES
Income taxes
Minority interests
PROFIT FOR THE FINANCIAL YEAR
The summary of the fi nancial statements contains pro forma consolidated
profi t and loss accounts for the period 1.1.-31.12.2002 as well as an official,
audited balance sheet as of 31.12.2002. The pro forma consolidated profi t and
loss accounts are based on the subsidiaries’ official fi nancial statements.
Consolidated Funds Statement
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SOURCE OF FUNDS
Internal fi nancing
Profi t for the period
Depreciation and reduction in value
Changes in capital
Changes in provisions
Total internal fi nancing
Changes in non-current assets
APPLICATION OF FUNDS
Investments in fi xed assets
Change in calculated tax debt
Change in long-term fi nancing
Translation adjustment in shareholders’ equity
Change in minority holding
Distributed dividends
Change in working capital
CHANGE IN WORKING CAPITAL
Cash and bank accounts
Current receivables
Inventories
Current liabilities
Working capital 1 January
Working capital 31 December
(1) 110 002 127 673
-4 366 -574
(2) 2 275 921
(3) -51 055 -69 457
(4) -26 103 -30 257
-6 045 -5 132
-21 757 -25 238
2 951 -2 064
(6) -1 152 -891
1 799 -2 955
(7) -805 -775
0 -268
994 -3 997
994 -3 997
6 045 5 132
0 29 779
170 1 059
7 209 31 973
361 2 728
7 570 34 701
1 696 32 713
886 -4 394
193 -28 291
-148 -125
629 -629
1 443 0
4 699 -726
2 871 35 427
7 570 34 701
-10 859 26 078
-1 423 34 331
-6 264 17 386
21 417 -42 368
2 871 35 427
35 427 0
38 298 35 427

Consolidated Balance Sheet
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�NON-CURRENT
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ASSETS
Intangible assets
Intangible rights
Other capitalised long-term expenses
Tangible assets
Land and waters
Buildings
Machinery and equipment
Other tangible assets
Advance payments and construction in progress
Investments
(12)
Other bonds and shares
NON-CURRENT ASSETS TOTAL
CURRENT ASSETS
Stocks
Raw materials and consumables
Work in progress
Finished products/Goods
Advance payments
Short-term receivables
Trade receivables
Loan receivables
Other receivables
Prepayments and accrued income
Receivables total
Cash in hand and at banks
CURRENT ASSETS TOTAL
ASSETS TOTAL
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CAPITAL AND RESERVES
Subscribed capital
Retained earnings
Profi t for the fi nancial year
CAPITAL AND RESERVES TOTAL
MINORITY HOLDINGS
PROVISIONS
CREDITORS
Deferred taxes
Non-current
Pension loans
Other non-current liabilities
Current
Loans from credit institutions
Advances received
Trade payables
Other current liabilities
Accruals and deferred income
CREDITORS TOTAL
LIABILITIES TOTAL
(8)
172 202
767 939 1 157 1 359
842 834
10 241 10 830
11 719 15 303
118 169
42 22 962 116 27 252
114 114
24 015 28 725
3 456 3 411
2 163 4 897
5 412 8 853
91 11 122 225 17 386
19 891 27 450
711 100
10 258 2 796
2 048 32 908 3 985 34 330
32 908 34 330
15 219 26 078
59 249 77 794
83 264 106 520
5 000 5 000
23 484 28 776
994 24 478 -3 997 24 779
29 478 29 779
0 629
(9) 1 229 1 059
(10)
3 508 4 394
27 890 28 087
208 28 098 204 28 291
78 89
3 231 6 683
7 576 12 318
1 067 8 850
8 999 20 951 14 428 42 368
52 557 75 053
83 264 106 520
17

18
Notes to the Financial Statements
These notes do not include all details required by the Finnish Accounting
Act and Ordinance.
The consolidated accounts have been prepared in accordance with the
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acquisition cost method. The consolidated fi nancial statements include
the Parent Company, Helvar Merca Oy Ab, and those companies in
which Helvar Merca Oy Ab directly or indirectly holds more than
50 % of the voting rights of all the shares. The fi nancial statements of
Group companies operating outside Finland have been converted and
grouped according to the Finnish Accounting Act. The translation of
the Balance Sheet into euro has been effected according to the Bank
of Finland´s average rates on the date of the closing of the accounts and
the fi nancial statements according to the average rates for the year.
Receivables and liabilities in the Balance Sheet have been translated into
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euro at the rates prevailing on the date of the closing of the accounts.
The hedging instruments of the open foreign currency-denominated
items have been valued at their current value taking into account the
interest rate factors.
���������������������������������������������������������������������������������������
1 SALES BY BUSINESS AREA
Production
Trading
Service
Total
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SALES BY MARKET AREA
Finland
Other EU countries
Other countries
Total
2 OTHER OPERATING INCOME
Rental income
Sales revenue from fi xed assets
Other income
Total
3 RAW MATERIALS AND SERVICES
Purchases during the fi nancial year
Variation in stock
External services
Total
4 STAFF EXPENSES
Wages and salaries
Pension expenses
Other social security and staff expenses
Total
5 STAFF AND MANAGEMENT (IN AVERAGE)
Finland
Other EU countries
Other countries
Total
Salaries paid to Managing Directors
and Boards of Directors
6 FINANCIAL INCOME AND EXPENSES
Dividend income
Interest income from long-term investments
Other interest and fi nancial income
Exchange differences
Interest and other fi nancial expenses
Total
88 484 75 382
14 225 42 036
7 293 10 255
110 002 127 673
25 838 48 288
55 678 53 287
28 486 26 098
110 002 127 673
194 359
2 029 166
52 396
2 275 921
49 773 69 809
-267 -2 197
1 549 1 845
51 055 69 457
21 684 22 808
2 739 5 562
1 680 1 887
26 103 30 257
478 580
65 100
1 1
544 681
937 800
3 2
0 10
618 988
-517 -226
-1 256 -1 665
-1 152 -891
Inventories in the consolidated accounts are valued at their acquisition
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cost, which includes in addition to the direct costs part of the indirect
costs of acquisition and production.
Fixed assets are entered in the Balance Sheet as depreciation according
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to plan reduced to the direct acquisition cost. Depreciation according
to plan has been calculated according to the economic life of fi xed asset
as straight-line depreciation on the original acquisition price.
Depreciation periods according to plan are:
Immaterial rights ................................................................ 10 years
Other capitalised expenditure......................................... 5 - 10 years
Buildings and constructions ......................................... 20 - 40 years
Machinery and equipment............................................. 3 - 10 years
Other tangible assets ............................................................. 5 years
Items are entered in the Balance Sheet as compulsory reserves which
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have been pledged by agreement or otherwise but which have not yet
been realised.Changes in them have been included in the fi nancial
statements.
7 INCOME TAXES
Income tax for actual operation
Change in calculational tax debt
Total
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8 CAPITAL AND RESERVES
Subscribed capital 1 January and 31 December
Retained earnings 1 January
Dividends distributed
Translation adjustment in shareholders’ equity
Retained earnings 31 December
Profi t for the fi nancial year
Capital and reserves total
Retained earnings 31 December
Profi t for the period
Transferred from depreciation difference reserve
Distributable reserves 31 December
9 PROVISIONS
Provisions for pensions
Provisions for guarantees
Total
10 NON-CURRENT CREDITORS, OVER 5 YEARS
Pension loans
27 890 28 087
11 CONTINGENT LIABILITIES
Loans with real estate mortgage
Pension loans
Mortgages
Leasing liabilities
For the year 2004
To be paid later
Total
Other contingent liabilities
Guarantees on behalf of own liabilities
Guarantees on behalf of other liabilities
1 691 994
-886 -219
805 775
5 000 5 000
24 779 28 889
-1 443 0
148 -113
23 484 28 776
994 -3 997
24 478 24 779
29 478 29 779
23 484 28 776
994 -3 997
-8 080 -10 246
16 398 14 533
133 130
1 095 929
1 228 1 059
27 996 27 996
2 893 3 566
214 256
136 226
350 482
1 758 2 605
458 391

12 BREAKDOWN OF PORTFOLIO
Share % Book value Ownership
Profi t/loss in
latest fi nancial
Subsidiaries Parent Share % of shares of equity statements
Company Group 1 000 € 1 000 € 1 000 €
FI Helvar Oy Ab 100 100 1 189 7 340 2 969
FI Fastems Oy Ab 100 100 1 177 11 368 2 398
GB Helvar Lighting Control Ltd. 100 100 4 270 0 0
DE Helvar Merca GmbH 100 100 1 122 1 327 -31
GB Helvar Merca Ltd. 100 100 4 010 56 -1 034
IT Helvar Merca S.r.l. 100 100 267 907 7
SE Helvarmerca AB 100 100 504 133 29
FI Kiinteistö Oy Ahertajankatu 6 100 100 342 176 29
FI Kiinteistö Oy Keskuojankatu 12 100 100 84 84 0
FI Oy Merca Trading Ab 100 100 3 3 0
FI Puistolan Ruuvituonti Oy 100 100 1 066 1 344 83
14 033
Parent Company’s other shares
FI Nordgolf Oy 22
FI Vakuutus Oy Garantia 84
106
Auditor’s Report
To the shareholders of
Helvar Merca Oy Ab
I have audited the accounting, the fi nancial
statements and the corporate governance of
Helvar Merca Oy Ab for the period 1.1. -
31.12.2003. The fi nancial statements, which
include the report of the Board of Directors,
consolidated and parent company income
statements, balance sheets and notes to the
fi nancial statements, have been prepared by the
Board of Directors and the Managing Director.
Based on my audit I express an opinion on
these fi nancial statements and on corporate
governance.
I have conducted the audit in accordance
with the Finnish Standards on Auditing. Those
standards require that I perform the audit to
obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit includes examining on a
test basis evidence supporting the amounts and
disclosures in the financial statements, assessing
the accounting principles used and significant
estimates made by the management as well as
Helsinki, 25 March 2004
Jan Holmberg
Authorised Public Accountant
evaluating the overall financial statement presentation.
The purpose of my audit of corporate
governance is to examine that the members
of the Board of Directors and the Managing
Director have legally complied with the rules
of the Companies Act.
In my opinion the financial statements
have been prepared in accordance with the
Accounting Act and other rules and regulations
governing the preparation of financial
statements. The financial statements give a true
and fair view, as defined in the Accounting
Act, of both the consolidated and the parent
company’s result of operations as well as of
the financial position. The financial statements
with the consolidated financial statements can
be adopted and the members of the Board of
Directors and the Managing Director of the
parent company can be discharged from liability
for the period audited by me. The proposal
by the Board of Directors regarding the distribution
of retained earnings is in compliance
with the Companies Act.
19

20
Associated Groups
The following groups have a common ownership base
Helvar Merca www.helvarmerca.com
The Helvar Merca Group is engaged in international industrial operations.
The main companies in the Group are Helvar, a manufacturer of lighting
ballasts and lighting control electronics, and Fastems, a specialist in factory
automation systems. Both companies rank among the leaders in their fi eld
in Europe. Group turnover in 2003 was EUR 110 million and the Group
employed 520 people.
Mercantile www.mercantilegroup.fi
The Mercantile Group specialises in technical trade in Finland and
Estonia. The Group has three subsidiaries. In Finland, Mercantile trades
in industrial supplies and fi re safety products, whereas Örum is a wholesaler
of automotive spare parts and accessories. In Estonia, Mercantile Group AS
is engaged in technical trade distribution. Group turnover in 2003 was
EUR 58 million and the number of employees was 280.
Electrosonic www.electrosonic.com
The Electrosonic Group is a global expert in complex audio-visual solutions.
An important part of the business is systems maintenance and service. The
three main companies in the Group are Electrosonic Limited in England,
Electrosonic Systems, Inc. in the United States and Lightinen Oy in Finland.
Group turnover in 2003 was EUR 56 million and the Group employed
240 people.
Veho www.veho.fi
The Veho Group is the largest automotive business in Finland. The Group
companies import Mercedes-Benz passenger cars and commercial vehicles,
smart, Citroën passenger cars and commercial vehicles, and Mitsubishi. Veho
also operates as a full service car dealer through fi ve outlets in the Helsinki
region as well as in Tampere, Turku and Oulu. Veho retail outlets also sell
Honda passenger cars. The Group operates retail outlets in Tallinn, Riga,
Vilnius and St Petersburg. Group turnover in 2003 was EUR 790 million
and the number of employees was 1 350.

Addresses
Group headquarters
Helvar Merca Oy Ab
www.helvarmerca.com
fi rst name.surname@helvarmerca.com
Purotie 3 A
FI-00380 Helsinki
PO Box 169, 00381 Helsinki
Finland
Tel: +358 9 56 54 1
Fax +358 9 56 54 9300
Group companies
Fastems Oy Ab
www.fastems.com
fi rst name.surname@fastems.com
info.fastems@fastems.com
Tampere (Headquarters)
Tuotekatu 4
FI-33840 Tampere
Finland
Tel: +358 3 268 5111
Fax: +358 3 268 5000
Vantaa
Hakkilankaari 2
FI-01380 Vantaa
Finland
Tel: +358 9 3450 48
Fax: +358 9 3450 5623
(Paper IQ Scanners)
Ahertajankatu 6
FI-33720 Tampere
Finland
Tel: +358 3 317 2303
Fax: +358 3 317 2301
Helvar Oy Ab FACTORIES IN KARKKILA
www.helvar.com
fi rst name.surname@helvar.com
Helsinki (Headquarters)
Purotie 3
FI-00380 Helsinki
PO Box 55, 00381 Helsinki
Finland
Tel: +358 9 56 54 1
Fax: +358 9 56 54 9600
SALES OFFICES
Göppingen
Heilbronner Straße 17/1
D-73037 Göppingen
Germany
Tel: +49 7161 963 800
Fax: +49 7161 963 8049
Göteborg
Bultgatan 40 B
SE-442 40 Kungälv
Sweden
Tel: +46 303 246 900
Fax: +46 303 246 910
London
Hawley Mill, Hawley Road
Dartford, Kent DA2 7SY
United Kingdom
Tel: +44 1322 282 276
Fax: +44 1322 282 250
(Magnetic ballasts)
Yrittäjäntie 23
FI-03600 Karkkila
Finland
Tel: +358 9 56 54 971
Fax: +358 9 56 54 9700
(Electronic ballasts)
Yrittäjäntie 30
FI-03600 Karkkila
Finland
Tel: +358 9 56 54 971
Fax: +358 9 56 54 9620
Lyon
99, rue de Gerland
F-69007 Lyon
France
Tel: +33 4 3765 2000
Fax: +33 4 3765 2001
Milan
Via Cavriana, 3
I-20134 Milano
Italy
Tel: +39 02 739 1203
Fax: +39 02 739 1260
SALES OFFICES
Brussels
Helvar, Bureau Benelux
Route de Lessines, 208E
B-7822 Isières (ATH)
Belgium
Tel: +32 68 445 693
Fax: +32 68 445 694
Budapest
Helvar GmbH Magyarországi
Fióktelepe
H-1139 Budapest
Lomb u. 31/b
Hungary
Tel: +36 1 239 3136
Fax: +36 1 239 3145
Frankfurt
Helvar Merca GmbH
Carl-Zeiss-Straße 12
D-63322 Rödermark
Germany
Tel: +49 6074 920 90
Fax: +49 6074 920 923
DISTRIBUTOR
USA
Fastems USA
15 McDonough Street
Dayton, OH 45402
USA
Tel: +1 937 463 7671
Fax: +1 937 463 7680
Göteborg
Helvarmerca AB
Bultgatan 40 B
SE-442 40 Kungälv
Sweden
Tel: +46 303 246 950
Fax: +46 303 588 75
London
Helvar Merca Ltd.
Hawley Mill, Hawley Road
Dartford, Kent DA2 7SY
United Kingdom
Tel: +44 1322 222 211
Fax: +44 1322 282 282
Milan
Helvar Merca S.r.l.
Via W.Tobagi, 26/1
I-20068 Peschiera Borromeo (MI)
Italy
Tel: +39 02 5530 1033
Fax: +39 02 5530 1032
Paris
Helvar, Bureau France
46, Grande Rue
F-95550 Bessauncourt
France
Tel: +33 1 3418 1281
Fax: +33 1 3418 0880
Stockholm
(Lighting control)
Helvarmerca AB
Drottning Kristinas väg 11, BV
SE-114 28 Stockholm
Sweden
Tel: +46 8 5452 3970
Fax: +46 8 2239 81
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