Report by the Board of Directors

Outlook for 2014

EB expects for the year 2014 that net sales and operating result will grow from the previous year (Net sales of EUR 199.3 million and operating profit of EUR 8.1 million, in 2013). Net sales is expected to grow slower than the previous year (Net sales growth 14.6 % in 2013). Net sales and operating result are expected to mainly cumulate during the latter half of the year mostly due to the seasonality factors of the Automotive Business Segment.

The growth of net sales and operating result in 2014 is expected to come mainly or wholly from the Automotive Business Segment, where the demand for EB“s software solutions is expected to remain good. The demand for R&D services in the Wireless Business Segment is driven by the implementations of LTE (Long Term Evolution) technology and by the growing need to wirelessly connect various consumer and professional devices to other equipment. The demand for R&D services in the mobile communication market is expected to decrease slightly from the previous year. EB aims at bringing its Wireless Business Segment“s products to the global defense and other authority markets, and expects to start gradually generating net sales from these markets from the latter half of 2014 onwards.

More specific market outlook is presented under sections “Market outlook for the Automotive Business Segments“ and “Market outlook for the Wireless Business Segment“.

The profit outlook for the year 2014 does not include possible non-recurring income or costs related to the reorganization cases of TerreStar Networks Inc. More information about the reorganization cases of TerreStar Networks and the amount of the receivables and collecting the receivables as well as other uncertainties regarding the outlook is presented in the “Identified Risks and Uncertainties“.