INTERIM REPORT January 1 - September 30, 2005
Lännen Tehtaat plc Stock exchange release November 1, 2005 at 8;30 a.m.
INTERIM REPORT January 1 - September 30, 2005
THIRD QUARTER
. The net turnover for the Group in July-September came to EUR 109.0
million (2004: EUR 107.0 million).
. The operating profit before non-recurring items came to EUR 3.6 million
(EUR 3.2 million).
. The operating profit after non-recurring items came to EUR 3.6 million
(EUR 5.4 million).
. The profit before taxes for all Group operations in the third quarter was
EUR 3.3 million (EUR 5.1 million).
. The earnings per share were EUR 0.38 (EUR 0.69).
. Matti Karppinen took up the post of CEO on September 1, 2005.
. In August, Lännen Tehtaat and Ravintoraisio founded a 50/50 owned joint
venture, Scandic Feed, for the Russian market.
This interim report has been drawn up in line with IFRS bookkeeping and valuation
principles. The data in this report have not been audited.
Key figures illustrating performance, EUR million
Continuing Discontinued
Group total operations operations
7-9/2005 7-9/2004 7-9/2005 7-9/2004 7-9/2005 7-9/2004
Net turnover 109.0 107.0 109.0 107.0 - 0.0
Operating profit before
non-recurring items 3.6 3.2 3.6 3.2 - 0.0
Operating profit after
non-recurring items 3.6 5.4 3.6 3.2 - 2.2
Profit before taxes 3.3 5.1 3.3 2.9 - 2.2
Profit after taxes 2.4 5.2 2.4 3.0 - 2.2
Earnings per share, EUR 0.38 0.69 0.38 0.46
The net turnover for the Food segment in the third quarter was EUR 39.9 million
(EUR 38.2 million), the Feed segment EUR 52.2 million (EUR 48.9 million), the
Grain Trading segment EUR 16.0 million (EUR 18.5 million) and the Other
Operations segment EUR 0.9 million (EUR 1.4 million).
The operating profit for the third quarter was EUR 0.9 million (EUR 1.5 million)
for Food, EUR 3.1 million (EUR 3.0 million) for Feed, EUR 0.5 million (EUR 0.3
million) for Grain Trading and EUR -0.7 million (EUR -1.7 million) for Other
Operations. The EUR 2.2 million profit under discontinued operations in the
comparative period came from non-recurring items arising from the separation of
Machinium from the Lännen Tehtaat Group.
REPORT PERIOD January 1 - September 30, 2005
Key figures illustrating performance, EUR million
Continuing Discontinued
Group total operations operations
1-9/2005 1-9/2004 1-9/2005 1-9/2004 1- 9/2005 1-9/2004
Net turnover 310.5 361.4 310.5 312.5 - 48.9
Operating profit/loss
before non-recurring items 5.7 6.6 5.7 8.1 - -1.5
Operating profit/loss
after non-recurring items 3.6 4.8 3.6 8.1 - -3.3
Profit before taxes 2.1 3.7 2.1 7.4 - -3.7
Profit after taxes 1.4 2.5 1.4 6.2 - -3,7
Earnings per share, EUR 0.29 0.32 0.29 0.93
Changes in Group structure
The operations of Lännen Plant Systems, formerly part of the Other Operations
segment, were sold at the beginning of April. The deal has no impact on the
financial performance of the Group.
Mildola Oy was merged with the Group's Feed segment at the beginning of May.
In August, Lännen Tehtaat and Ravintoraisio founded a 50/50 owned joint venture,
Scandic Feed, for the Russian market. The new company aims to commence farm feed
production in north-west Russia. Avena Nordic Grain set up a subsidiary, UAB
Avena Nordic Grain, in Lithuania in order to develop its grain trade business in
the Baltic States. The company started operating in August.
Net turnover
The net turnover for Lännen Tehtaat's continuing operations amounted to EUR 310.5
million (EUR 312.5 million) in the period January-September 2005. Mildola Oy,
acquired in May, contributed EUR 11.2 million to the Group turnover. The net
turnover for discontinued operations was EUR 48.9 million in January-September
2004.
The Food segment's net turnover was EUR 110.4 million (EUR 92.8 million). The
increase was due to the merging of Apetit Kala with the Group at the end of June
2004. The net turnover of the fish business grew according to plan. Retail sales
of frozen food products equalled those for the comparative period, on the whole.
Sales of frozen meals and pizzas and frozen potato products were higher than in
the previous year. Sales of frozen vegetables fell, however, particularly own
brand products. Retail sales of jams and marmalades also went down. Sales to the
hotel, restaurant and catering sector and the food industry also fell short of
the comparative period because of higher imports. Imports of sugar consumer
products from the Baltic States increased, and this reduced the net turnover of
Lännen Sugar. However, thanks to a good crop of apples and berries, the fall in
sales of sugar was far less than expected.
The net turnover in the Feed segment in January-September was EUR 145.2 million
(EUR 142.0 million). Comparable net turnover excluding the effects of a corporate
acquisition fell by about 5 per cent on the previous year, as a result of the
impact on sales prices of lower feed raw material prices than in the previous
year.
The net turnover for Grain Trading was EUR 49.9 million (EUR 71.6 million).
Volumes in January-August fell owing to the poor crop in Finland in 2004. The
price level, too, was below that of last year. At the end of the review period,
grain trading with this year's crop started according to plan.
The net turnover of the Other Operations segment in January-September was EUR 5.0
million (EUR 6.1 million). The fall in net turnover is a consequence of the sale
of the operations of Lännen Plant Systems at the beginning of April.
Financial performance
The operating profit for Lännen Tehtaat's continuing business operations before
the deduction of non-recurring items was EUR 5.7 million (EUR 8.1 million) in
January-September. The non-recurring items for the review period came to EUR -2.1
million. This figure includes write-downs of EUR 3.2 million in the first quarter
arising from the decision to close down the Suomen Rehu factory in Vaasa, and the
recording of EUR 1.1 million in negative goodwill as income, which arose through
the acquisition of Mildola Oy in the second quarter. The operating result for
discontinued operations was EUR -3.3 million in the comparative period.
The Food segment's operating result was EUR -0.5 million (EUR 1.9 million). The
profitability of the Food segment fell short of the targeted level and was below
the figure for the comparative period mainly as a result of poor profitability in
the fish product business in the early part of the year. The operating result of
the Apetit unit fell slightly short of the comparative period due to a fall in
net turnover. The operating profit of Lännen Sugar was at the same level as in
the comparative period.
The Feed segment's operating profit before non-recurring items for January-
September was EUR 7.9 million (EUR 7.3 million) and EUR 5.8 million after non-
recurring items. The acquisition of Mildola for the Feed segment improved the
latter's profitability. The comparative operating profit excluding Mildola and
before non-recurring items was close to the comparative period.
The Grain Trading operating profit was EUR 0.9 million (EUR 1.7 million). EUR 0.4
million of the reduction in operating profit was accounted for by changes in the
fair value of derivative contracts recognized in income. Recording the derivative
contracts taken out to protect raw material positions at fair value weakened the
financial performance of the 2005 review period by EUR 0.2 million and improved
the performance for the comparative 2004 period by EUR 0.2 million. From the
beginning of 2005, hedge accounting has been applied to effective hedging of
purchases and sales in accordance with IAS 39 requirements in order to give a
more accurate picture of the Grain Trading performance.
The operating result of the Other Operations segment was EUR -2.5 million (EUR
-2.8 million).
The consolidated profit before taxes was EUR 2.1 million (EUR 3.7 million) and
the profit for the period EUR 1.4 million (EUR 2.5 million).
Financing and cash flow
The Group's financing situation and liquidity was good throughout the review
period. The cash flow from operations after interest and taxes was EUR 11.9
million (EUR 25.8 million). The difference between this year and the comparative
period is mainly due to changes in the working capital. Net cash flow from
investments was EUR -4.7 million (EUR -5.5 million). A dividend of EUR 4.1
million (EUR 3.9 million) was paid.
The Group's interest-bearing liabilities at the end of the period under review
totalled EUR 44.5 million (EUR 42.6 million) and financial assets EUR 7.3 million
(EUR 8.7 million). The consolidated balance sheet total was EUR 215.8 million
(EUR 210.1 million) and the equity ratio 49.0% (48.5%). At the end of the review
period, the commercial papers issued for the Group's short-term financing
totalled EUR 14.0 million (EUR 2.0 million). Liquidity has been secured through
long-term committed credit facilities. No credit facilities were used during the
period under review.
Investment
Consolidated gross investment excluding corporate acquisitions during the period
under review amounted to EUR 3.9 million (EUR 3.7 million). In addition, EUR 4.2
million (EUR 2.6 million) were spent on the acquisition of shares in subsidiaries
and joint ventures.
The most significant investment item was the acquisition of a majority
shareholding in Mildola Oy totalling EUR 4.0 million in a transaction that came
into effect at the beginning of May.
Seasonal nature of operations
The transition to IFRS reporting has had a noticeable impact on the accrual of
Lännen Tehtaat's profits over the financial year.
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads. In
production that focuses on seasonal crops, raw materials are processed into
finished products chiefly during the year's final quarter, which means that the
inventory volumes and their balance-sheet values are at their highest at the end
of the year. Entering as an expense the fixed production overheads included in
the historical cost is deferred until the time of sale. As a result, most of the
Group's annual profit is accrued in the final quarter.
The seasonal nature of operations features most strongly in the Food segment and
in the associate company Sucros, which is part of that segment. There is also
some seasonal fluctuation in the Feed segment.
Staff and organization
The average number of staff during the review period was 1,030 (1,091).
Matti Karppinen took up his appointment as CEO of Lännen Tehtaat plc on September
1, 2005.
Use of AGM authorizations
So far the Board has not used the authorizations granted by the Annual General
Meeting to raise share capital and to surrender Lännen shares held by the
company. The company owns 65,000 of its own shares, representing 1.0% of the
share capital and votes.
Share trading
During the review period, 3,210,991 (1,390,750) company shares were traded on the
Stock Exchange, which was 50.8% (22.5%) of the total stock. The highest share
price was EUR 17.65 (EUR 14.50) and the lowest EUR 11.71 (EUR 11.00). Share
trading during the period totalled EUR 44.5 million (EUR 17.6 million).
Announcements pursuant to chapter 2, section 10 of the Securities Markets Act
Tapiola General Mutual Insurance Company and Tapiola Mutual Life Assurance
Company announced on February 18, 2005 that the total proportion of their holding
in Lännen Tehtaat plc's share capital and voting rights had fallen to 4.37% on
February 17, 2005.
Raisio plc announced on September 14, 2005 that its holding in Lännen Tehtaat
plc's share capital and voting rights had fallen below 5% on September 14, 2005.
After the change, neither Raisio plc nor any organization or foundation
controlled by Raisio plc owns Lännen Tehtaat plc's shares.
ODIN Forvaltning AS announced on September 15, 2005 that the proportion of its
holding in Lännen Tehtaat plc's share capital and voting rights had risen to
5.18%.
Reform of the EU sugar regime
The EU Commission announced its proposal for the new sugar regime in June,
proposing a reduction of 39 per cent in sugar prices and 42 per cent in sugar
beet prices.
The aim is to cut surplus production and to reduce sugar prices in the EU region.
The proposal includes partial compensation for sugar beet farmers and lump-sum
compensation for the section of the industry giving up or reducing sugar
production. The proposal is also based on a WTO decision regarding the abolition
of export subsidies.
The proposal threatens sugar beet growing and the beet sugar industry in
peripheral areas of the EU, such as Finland. Finland has demanded amendments to
the Commission proposal that take better account of local conditions, including
full compensation for farmers.
The EU sugar regime is likely to be given its final form after negotiations in
November, before the WTO Ministerial Meeting in December. The new regime will
apply to the 2006 crop period.
The proposal as such would put an end to both sugar beet farming and the beet
sugar industry in Finland. The new sugar regime will have a negative impact on
the performance of Lännen Tehtaat in future years.
Prospects for the entire year
The Food segment's net turnover will grow compared with the previous year when
Apetit Kala's entire net turnover for the year is included in the segment's
figures. Sales of frozen foods are estimated to follow the general trend in the
market. The percentage of sales held by private label products is expected to
continue to grow. Sales of jams and marmalades will fall short of last year's
figures. Total consumption of sugar will not rise and the proportion accounted
for by Finnish sugar is expected to fall. According to estimates, sales of Lännen
Sugar consumer products will fall short of the 2004 level as a result of sugar
imports. A programme launched in May to improve efficiency and cut costs is
expected to improve Apetit Kala's profitability in the last quarter of the year.
The performance of the entire Food segment will be well below that of last year
due to the loss shown by Apetit Kala in the early part of the year.
The Feed segment's net turnover will increase as a result of its merging with
Mildola. Feed sales excluding Mildola are expected to fall somewhat short of
2004. The non-recurring expenses caused by the closure of the Vaasa factory will
have a negative effect on the result in the Feed segment in 2005. The benefits of
this arrangement will be realized in full as from 2007. Despite the positive
impact of Mildola, it is predicted that the performance of the Feed segment as a
whole will be slightly weaker than last year.
The net turnover for Grain Trading for the entire year will fall short of targets
and of last year's level due to the poor crop last year and the slow market entry
of this autumn's new crops.
The net turnover for the Lännen Tehtaat Group's continuing business operations
will increase slightly compared with 2004.
Most of the consolidated operating profit will accrue in the last quarter. The
profit for the Group in 2005 is expected to fall somewhat short of the last
year's level. As a result of the non-recurring expenses in the Feed segment, poor
profitability in the fish business, and a fall in the share of profits from
associate companies, both the operating profit and the profit before taxes for
Lännen Tehtaat's continuing operations for the whole of 2005 are expected to fall
short of the 2004 figures.
Future areas of emphasis
The Lännen Tehtaat's vision is to be one of the leading Finnish food companies.
In the future, the emphasis will be on developing the company's Food segment.
Measures to expand the Group's Food segment have already been initiated. The aim
is a considerable expansion in operations in Finland and the northern Baltic Sea
region by the end of next year.
Development of the business operations of the Agricultural Division will continue
in the Division's growth market in the Baltic States and Russia.
A bulletin on the financial statements for 2005 will be issued on February 21,
2006.
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 109.0 107.0 310.5 312.5 424.9
Other operating income 0.5 0.1 2.7 2.6 2.9
Operating expenses -103.7 -101.7 -300.6 -301.0 -405.0
Depreciation and reduction
in value -2.1 -2.2 -9.0 -6.0 -8.1
Operating profit 3.6 3.2 3.6 8.1 14.7
Financial income and expenses -0.4 -0.6 -0.9 -1.0 -1.1
Share of profit of associate
companies 0.1 0.3 -0.7 0.3 2.7
Profit before taxes 3.3 2.9 2.1 7.4 16.3
Income taxes -1.0 0.1 -0.7 -1.2 -2.1
Profit for the financial period 2.4 3.0 1.4 6.2 14.2
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.4 2.8 1.8 5.7 14.1
Minority interest 0.0 0.2 -0.4 0.5 0.1
Earnings per share, EUR 0.38 0.46 0.29 0.94 2.30
Diluted earnings per share, EUR 0.38 0.46 0.29 0.94 2.30
CONSOLIDATED INCOME STATEMENT - DISCONTINUED OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 0.0 0.0 0.0 48.9 48.9
Other operating income 0.0 0.0 0.0 1.2 1.2
Operating expenses 0.0 2.2 0.0 -52.8 -52.8
Depreciation and reduction in
value 0.0 0.0 0.0 -0.6 -0.6
Operating profit/loss 0.0 2.2 0.0 -3.3 -3.3
Financial income and expenses 0.0 0.0 0.0 -0.4 -0.4
Share of profit of associate
companies 0.0 0.0
Profit/loss before taxes 0.0 2.2 0.0 -3.7 -3.7
Income taxes 0.0 0.0 0.0 0.0 0.0
Profit/loss for the financial
period 0.0 2.0 0.0 -3.7 -3.7
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 1.4 0.0 -3.7 -3.7
Minority interest 0.8 0.0 0.0 0.0
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUED OPERATIONS
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Net turnover 109.0 107.0 310.5 361.4 473.8
Other operating income 0.5 0.1 2.7 3.8 4.1
Operating expenses -103.7 -99.5 -300.6 -353.8 -457.8
Depreciation and reduction
in value -2.1 -2.2 -9.0 -6.6 -8.7
Operating profit 3.6 5.4 3.6 4.8 11.4
Financial income and expenses -0.4 -0.6 -0.9 -1.4 -1.5
Share of profit of associate
companies 0.1 0.3 -0.7 0.3 2.7
Profit before taxes 3.3 5.1 2.1 3.7 12.6
Income taxes -1.0 0.1 -0.7 -1.2 -2.1
Profit for the financial period 2.4 5.2 1.4 2.5 10.5
The income taxes are based on the result for the period.
Attributable to:
Equity holders of the parent 2.4 4.2 1.8 2.0 10.4
Minority interest 0.0 1.0 -0.4 0.5 0.1
Earnings per share, EUR 0.38 0.69 0.29 0.32 1.68
Diluted earnings per share, EUR 0.38 0.69 0.29 0.32 1.68
NET TURNOVER BY BUSINESS SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Food segment 39.9 38.2 110.4 92.8 130.6
Feed segment 52.2 48.9 145.2 142.0 194.8
Grain Tradig segment 16.0 18.5 49.9 71.6 91.0
Other operations segment 0.9 1.4 5.0 6.1 8.5
Continuing operations total 109.0 107.0 310.5 312.5 424.9
Discontinued operations 48.9 48.9
Total 109.0 107.0 310.5 361.4 473.8
OPERATING PROFIT/LOSS BY BUSINESS SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Food segment 0.9 1.5 -0.5 1.9 4.1
Feed segment 3.1 3.0 5.8 7.3 11.7
Grain Trading segment 0.5 0.3 0.9 1.7 2.3
Other operations segment -0.7 -1.7 -2.5 -2.8 -3.4
Continuing operations total 3.6 3.1 3.6 8.1 14.7
Discontinued operations 2.2 -3.3 -3.3
Total 3.6 5.4 3.6 4.8 11.4
NET TURNOVER BY GEOGRAPHICAL SEGMENT
EUR million
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2005 2004 2005 2004 2004
3 mths 3 mths 9 mths 9 mths 12 mths
Finland 99.3 99.1 277.6 283.1 383.2
Other EU member states 7.0 7.1 20.7 52.5 59.6
Other counries 2.7 0.8 12.2 25.8 31.0
Total 109.0 107.0 310.5 361.4 473.8
CONSOLIDATED BALANCE SHEET
EUR million
Sept.30 Sept. 30 Dec. 31
2005 2004 2004
ASSETS
Non-current assets
Tangible assets 71.1 70.7 70.0
Goodwill 17.4 17.4 17.4
Other intangible assets 1.9 2.8 2.5
Investment in associate companies 20.7 21.1 23.5
Available-for-sale financial
assets 3.1 2.5 2.5
Receivables 0.6 0.3 0.3
Deferred tax assets 2.8 2.3 2.2
117.6 117.1 118.4
Current assets
Inventories 52.8 46.1 49.5
Receivables 38.0 38.2 37.2
Financial assets at fair value
through profit or loss 0.5 0.5
Cash and cash equivalents 7.3 8.1 9.7
98.2 93.0 96.9
Total assets 215.8 210.1 215.4
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 102.5 96.4 104.3
Minority interest 3.2 5.6 2.5
Total equity 105.7 102.0 106.8
Non-current liabilities
Long-term borrowings 19.9 30.5 23.1
Deferred tax liabilities 8.1 7.8 7.5
Non-current provisions 1.0 1.1 1.0
Non-current liabilities total 29.0 39.4 31.6
Current liabilities
Trade payables and other
liabilities 55.6 55.3 52.7
Short-term borrowings 24.5 12.3 23.3
Current provisions 1.0 1.1 1.0
Current liabilities total 81.1 68.7 77.0
Liabilities total 110.2 108.1 108.6
Total equity and liabilities 215.8 210.1 215.4
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1-9/2005 1-9/2004 1-12/2004
9 mths 9 mths 12 mths
Cash flows from operating
activities 11.9 25.8 28.8
Cash flows from investing
activities -4.7 -5.5 -10.6
Cash flows from financing
activities
Change in net debt -6.0 -20.8 -17.1
Dividends paid -4.1 -3.9 -3.9
Net increase/decrease in cash
and cash equivalents -2.9 -4.4 -2.8
Cash and cash equivalents
at beginning of the period 10.2 13.1 13.0
Cash and cash equivalents
at end of the period 7.3 8.7 10.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Subordinated loans
I = Equity attributable to equity holders of the parent company
J = Minority interest
K = Shareholders' equity total
A B C D E F G H I J K
Shareholders'
equity at Dec 31,
2003, FAS 12.2 21.4 7.3 0.8 -0.5 52.1 1.7 95.1 4.9 100.0
Transition to
IFRS standars 0.9 -0.8 0.0 2.1 -1.7 0.6 -0.6 0.0
Shareholders'
euity at Jan 1,
2004, IFRS 12.2 21.4 0.9 7.3 0.0 -0.5 54.3 0.0 95.7 4.3 99.9
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.3 0.3 0.3
removed from equity
and recognized in
income statement -0.2 -0.2 -0.2
Translation
differences 0.3 0.3 0.3
Dividend
distribution -3.9 -3.9 -3.9
Targeted share
issue 0.4 2.0 2.4 2.4
Changes in
minority interest -0.1 -0.1 0.9 0.8
Other changes 0.0 0.0 0.0
Result of the
period 2.0 2.0 0.5 2.5
Shareholders'
equity at Sept 30,
2004, IFRS 12.6 23.4 1.0 7.3 0.0 -0.2 52.3 0.0 96.4 5.6 102.0
Shareholders'
equity at Jan 1,
2005, IFRS 12.6 23.4 1.1 7.3 0.0 -0.3 60.2 0.0 104.3 2.5 106.8
Available-for-sale
financial assets:
gains/losses
from fair value
measurement 0.4 0.4 0.4
Cash flow hedges:
gains/losses
recorded in
equity 0.0 0.0 0.0
Translation
differences 0.1 0.1 0.1
Dividend
distribution -4.1 -4.1 -0.1 -4.2
Changes in
minority interest 0.0 1.2 1.2
Other changes 0.0 0.0 0.0
Result of the period 1.8 1.8 -0.4 1.4
Shareholders'
equity at Sept 30,
2005, IFRS 12.6 23.4 1.5 7.3 0.0 -0.2 57.8 0.0 102.3 3.2 105.7
RECONCILIATION OF SHAREHOLDERS' EQUITY IN THE COMPARATIVE PERIOD
EUR million
Shareholders' equity at September 30, 2004, FAS 93.1
+ minority interest (IAS 1, difference in presentation) 4.6
IFRS 3 Goodwill 2.6
IAS 2 Inventories 2.7
IAS 12 Deferred tax assets 1.8
IAS 12 Deferred tax liabilities -3.3
IAS 16 Tangible assets 0.4
IAS 19 Pension liability -0.7
IAS 28 Investments in associate companies 0.5
IAS 32 Own shares -0.8
IAS 39 Shares in listed companies 1.4
IAS 39 Derivatives -0.4
Shareholders' equity at September 30, 2004 (IFRS) 102.0
RECONCILIATION OF RESULT IN THE COMPARATIVE PERIOD
EUR million
Profit for the period (FAS) 1.1
+ minority interest (IAS 1, difference in presentation) 0.4
IFRS 3 Reversal of good will amortizations 2.4
IAS 2 Inventories -1.1
IAS 12 Deferred tax assets -0.2
IAS 12 Deferred tax liabilities -0.1
IAS 17 Finance leases 1.0
IAS 19 Pension liability 0.0
IAS 28 Investments in associate companies -1.4
IAS 38 Intangible assets 0.0
IAS 39 Derivatives 0.4
Profit for the period Jan 1 - Sept 30, 2004 (IFRS) 2.5
KEY INDICATORS
Sept. 30 Sept. 30 Dec. 31
2005 2004 2004
Shareholders' equity per
share, EUR 16.91 16.31 17.08
Equity ratio, % 49.0% 48.5% 49.6%
Investments, EUR million 8.1 6.3 11.1
Average number of personnel,
continuing operations 1030 847 890
Average number of personnel,
discontinued operations - 244 182
CONTINGENT LIABILITIES
EUR million
Sept. 30 Sept. 30 Dec. 31
2005 2004 2004
Mortgages given for debts:
Real estate mortgages 40.7 35.1 34.9
Corporate mortgages 51.4 68.4 51.4
Share pledged 3.6 3.6 3.6
Other securities given:
Pledges 0.0 0.0 0.0
Corporate mortgages 0.2 0.2 0.2
Leasing liabilities 0.8 0.6 0.9
Non-cancellable other leases,
minimum lease payments 2.2 2.0 1.9
Contingent liabilities for own
commitments:
Repurchasing commitments 0.1 0.2 0.2
Contingent liabilities on behalf
of the associate companies:
Guarantees 0.1 0.1 0.1
Repurchasing commitments 0.1 0.1 0.1
Other contingent liabilities:
Redemption liability of
leased buildings 2.4 2.5 2.5
OUTSTANDING VALUES OF DERIVATIVE INSTRUMENTS
Forward currency contracts 2.3 2.6 3.3
Commodity derivative instruments 4.9 5.8 5.9
Interest rate swaps 25.0 25.0 25.0
The data in this interim report have not been audited.
LÄNNEN TEHTAAT PLC
Board of Directors
More details: Matti Karppinen, CEO, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
