Lännen Tehtaat's IFRS comparison data and reconciliations for the financial year 2004
Lännen Tehtaat plc Stock exchange release April 27, 2005 9;30 a.m.
LÄNNEN TEHTAAT'S IFRS COMPARISON DATA AND RECONCILIATIONS FOR THE FINANCIAL YEAR
2004
The Lännen Tehtaat Group will start applying the International Financial
Reporting Standards (IFRS) in its financial reporting for 2005. The first IFRS
interim report for the first quarter of year 2005 will be published on May 3,
2005. The first financial statement in conformance with the IFRS will be prepared
for the period ending in December 31, 2005.
What follows below is a summary of the main adjustments needed to the Group's
reported 2004 quarterly financial information in order to present it in a form
consistent with the IFRS requirements for comparison against the 2005 financial
information. Lännen Tehtaat's 2004 financial information was originally reported
in accordance with the accounting regulations for listed companies in Finland
(Finnish Accounting Standards (FAS)). The FAS accounting principles are presented
in Lännen Tehtaat's Annual Report 2004.
The IFRS financial information for 2004 has been drafted in accordance with the
standards in force in April 2005. For this reason, it might be necessary to
adjust the IFRS-based financial information presented in the summary prior to its
inclusion as comparative information in the Group's first IFRS financial
statements, which will be prepared for the financial year ending on December 31,
2005. This is due to the ongoing amendments to IFRS, which might affect the
financial statements of companies applying IFRS as from 2005.
Regarding tangible assets the cost model has been chosen as the accounting
policy. The comparative information of the derivative contracts complies with IAS
32 and IAS 39, which means that the derivate instruments have been measured at
their fair values. Hedge accounting has not been applied in 2004, thus the
changes of value have been entered through profit or loss. Regarding business
combinations the exemption allowed for first-time adopters not to apply IFRS 3
Business Combinations to past combinations has been elected. In accordance with
the IFRS regulations minority interest is presented as part of the shareholders'
equity as a separate item.
The Machinium Division, which exited the Lännen Tehtaat Group during the third
quarter of 2004, is presented under discontinuing operations in accordance with
IFRS 5. The business operations of the exited Machinium Division formed a segment-
level group of cash generating units until its exit from the Lännen Tehtaat
Group. The Group's other business operations are presented under continuing
operations, which are those from which the discontinuing operations were
disengaged as described above.
The financial information presented in this document has not been audited.
All the figures in this release have been presented in millions of Euros, unless
specifically mentioned otherwise.
THE MAIN CHANGES TO THE ACCOUNTING PRINCIPLES AND THE REPORTED 2004 FIGURES AS A
RESULT OF APPLYING THE IFRS STANDARDS
The numbering below is used in the profit and loss account, key indicators,
segment information and balance sheet attached, which show the differences
arising from the transition to IFRS reporting.
1) TREATMENT OF GOODWILL
According to IFRS 3, goodwill is no longer depreciated according to plan.
Instead, any impairment is assessed through annually performed impairment tests
in accordance with IAS 36. Impairment test will also be performed if there is an
indication that the cash generating unit to which goodwill has been allocated,
may be impaired. IAS 36 impairment testing has been carried out for all goodwill
entered in the opening IFRS consolidated balance sheet on January 1, 2004. The
present value of the cash flow from the impairment testing exceeds the book value
of the asset items covered by the tests. The reversal of goodwill amortization
improves the IFRS operating result for 2004 by EUR 3.2 million compared with the
operating result under the FAS standards.
The opening IFRS consolidated balance sheet on January 1, 2004 includes goodwill
amounting to EUR 17.6 million. EUR 16.6 million of this has been allocated to the
Feed Division, EUR 0.6 million to the Food Division and EUR 0.5 million to
discontinuing operations.
2) SEGMENT REPORTING
The Lännen Tehtaat Group's primary system of segment reporting is based on
business segments. The Group has four business segments: the Food Division, the
Feed Division, the Grain Trading Division and Other Operations. Other Operations
includes Lännen Plant Systems, Harviala Oy and the corporate administration. The
Machinium Division, which was part of the Group until July 2004, is presented
under discontinuing operations. The information reported in 2004 under the FAS
standards is reclassified here according to the IFRS segment classification.
The Lännen Tehtaat Group's secondary system of segment reporting is based on
market area segments. The Group has three market areas determined in accordance
with IAS 14: Finland, other EU member states and other countries.
3) OWN SHARES
Lännen Tehtaat plc shares held by the parent company are not presented as assets
nor as shareholders' equity.
4) SEASONALITY OF QUARTERLY OPERATIONS
The transition to IFRS reporting brings a change in the timing of the operating
result accrual during the financial year. Calculated according to IFRS, the
operating result is generated mainly in the fourth quarter of the financial year,
when the raw materials from the crop season are processed into product and semi-
finished product inventories. The higher inventory prices of products ready for
sale will correspondingly reduce the sales margin during the first three quarters
of the year. This affects the Group's food business and partly also its feed
business, and especially the associate company Sucros.
The effect on the operating result accrual in each quarter is evident from the
reconciliation of the IFRS and FAS results presented in section 12 (see lines
'IAS 2 Inventories' and 'IAS 28 Investments in associate companies').
5) PROVISIONS
In the IFRS balance sheet, provisions are classified into current and non-current
liabilities. For the purposes of this document, the FAS figures have been
classified in this way too.
6) PRESENTATION OF SHARE OF PROFITS OF ASSOCIATE COMPANIES
The transition to the IFRS profit and loss account format brings a change to the
way the share of profits of Lännen Tehtaat's associate companies is presented.
Prior to the transition, the share of profits of associate companies was
presented before the operating result. Under the IFRS profit and loss account,
the share of profits of associate companies is presented after the operating
result.
The profit and loss account format in this document is presented in accordance
with the IFRS standards. The FAS profit and loss account presented the share of
profits of associate companies according to the former practice, i.e. before the
operating result. For this reason, a separate line, 'Share of profits of
associate companies, FAS', has been added to the profit and loss account in this
document. In accordance with IAS 1, the 'Share of profits of associate companies,
IFRS' is presented after the operating result.
Due to the difference in presentation of the share of profits of associate
companies, the classification in the table presenting the segment results is
different from that in the interim reports and annual report for 2004.
7) FINANCE LEASE AGREEMENTS
Under IAS 17, rental agreements have been divided into finance lease agreements
and other rental agreements. As an IFRS adjustment, assets acquired through
finance lease agreements have been recognized as assets, and finance lease debts
as liabilities, in the balance sheet. In the profit and loss account, rent
expenses entered as operating expenses in the FAS accounting have been reversed.
Depreciation according to plan and interest expenses resulting from finance lease
liabilities have been entered as operating expenses.
8) DEFERRED TAX ASSETS AND LIABILITIES
In accordance with IAS 1, deferred tax assets and liabilities are presented as
non-current assets and liabilities.
Among the taxable IFRS adjustments, deferred taxes have been entered on the basis
of IAS 12. In the balance sheet at the transition date, January 1, 2004, deferred
tax liabilities resulting from IFRS adjustments amounted to EUR 6.8 million (FAS:
EUR 4.4 million) and deferred tax assets amounted to EUR 2.4 million (FAS: EUR
0.4 million). In connection with the acquisition of Apetit Kala in the second
quarter of 2004 and subsequent allocation of the purchase price to the assets
acquired, a deferred tax liability amounting to EUR 0.7 million was recognized.
9) AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS
Available-for-sale financial assets are carried at fair value in accordance with
the basic rule of IAS 39. The fair values of these assets amounted to EUR 2.7
million on January 1, 2004. Under the FAS accounting practice, the AFS assets are
carried at acquisition cost, amounting to EUR 1.4 million. The profit generated
by the valuation difference, less the deferred tax liability, is included in the
equity as net unrealized gains on available-for-sale financial assets.
10) DEFINED BENEFIT PENSION ARRANGEMENTS
A liability amounting to EUR 0.7 million has been entered in the opening IFRS
balance sheet for the defined benefit pension arrangements. Under the FAS
accounting no such liability was recognized. EUR 0.6 million of the liability
figure recognized under the IFRS reporting has been entered as an expense
adjustment in the last quarter of 2004 due to the changes made to the Employees'
Pensions Act (TEL). At the end of 2004 the liability amounted to EUR 0.1 million.
11) BUSINESS COMBINATIONS
Lännen Tehtaat plc acquired a majority (50.9%) of the shares of Apetit Kala Oy
(formerly Kuopion Kalatukku Oy). Apetit Kala's business operations comprise fish
processing and wholesaling and also the retail sale of fish.
The corporate acquisition was carried out as a share exchange whereby the seller
was allowed to subscribe 195,000 new Lännen Tehtaat plc shares as the purchase
price. The value of these shares in the exchange was EUR 2.3 million and the
subscription was made on June 10, 2004. At the same time the ownership of the
acquired shares was transferred to Lännen Tehtaat. Apetit Kala Oy has been
included in the consolidated financial statements as of June 30, 2004.
In the FAS accounting, a consolidation asset of EUR 1.2 million under the
acquisition cost calculations was entered under buildings. The table below shows
the allocation of the acquisition cost in accordance with IFRS 3 to the fair
values of the asset items. The quantification basis for the fair value of real
estate consisted of external evaluations, and, in the case of real estate owned
for less than a year, the acquisition cost. Machinery and equipment was measured
at fair value, which is based on the book value adjusted for state grants
received. Inventories were valued at sales price adjusted for sales expenses.
Fair values Book values prior
recognised in to the combination
the combination
Intangible assets 0.1 0.1
Tangible assets 8.6 6.1
Inventories 2.0 1.6
Trade receivables 2.6 2.6
Other receivables 0.2 0.2
Cash and cash equivalents 1.5 1.5
Total assets 15.0 12.1
Deferred tax liabilities 0.7 0.0
Interest-carrying liabilities 3.2 3.2
Other liabilities 6.2 6.2
Total liabilities 10.1 9.4
Net assets 4.9
Acquired proportion
of the net assets 2.5
Acquisition cost 2.7
Goodwill 0.2
12) INVENTORIES
Under the IFRS standards, inventories include fixed purchase and production
costs. These were not included in the acquisition cost of inventories under the
previous FAS accounting practice.
The following table gives a summary of the impact of the transition to IFRS
standards on Lännen Tehtaat's quarterly results for 2004.
Q1 Q1-Q2 Q1-Q3 Q1-Q4
2004 2004 2004 2004
Profit/loss for the period, FAS 0.0 -1.9 1.1 6.0
+ minority interest
(IAS 1, difference in
presentation) -0.6 -0.5 0.4 0.2
IFRS 3 Reversal of goodwill
amortizations 0.8 1.6 2.4 3.2
IAS 2 Inventories -0.7 -1.7 -1.1 -0.3
IAS 12 Deferred tax assets -0.1 -0.2 -0.2 -0.5
IAS 12 Deferred tax liabilities 0.1 0.1 -0.1 -0.2
IAS 17 Finance leases 0.0 0.0 1.0 1.0
IAS 19 Pension liability 0.0 0.0 0.0 0.6
IAS 28 Investments in associate
companies -0.6 -1.0 -1.4 0.3
IAS 38 Intangible assets 0.0 0.0 0.0 0.0
IAS 39 Derivatives 0.3 1.0 0.4 0.2
Profit/loss for the period, IFRS-0.9 -2.7 2.5 10.5
The following table shows the results of a reconciliation of shareholders' equity
under the FAS standards and under the IFRS standards at the end of each quarterly
period in 2004 and at the IFRS transition date on January 1, 2004.
JAN 1 MAR 31 JUN 30 SEP 30 DEC 31
Shareholders' equity, FAS 95.1 91.5 91.9 93.1 97.5
+ minority interest
(IAS 1, difference in
presentation) 4.9 3.9 5.4 4.6 1.6
IFRS 3 Goodwill 0.0 0.8 1.8 2.6 3.4
IAS 1 Subordinated loans -1.7 -1.7 -1.7 0.0 0.0
IAS 2 Inventories 3.4 2.7 2.2 2.7 3.5
IAS 12 Deferred tax assets 2.0 2.0 1.8 1.8 1.6
IAS 12 Deferred tax
liabilities -2.4 -2.3 -3.0 -3.3 -3.4
IAS 16 Tangible assets -0.4 -0.7 0.4 0.4 0.4
IAS 17 Finance leases -1.4 -1.6 -1.6 0.0 0.0
IAS 19 Pension liability -0.7 -0.7 -0.7 -0.7 -0.1
IAS 28 Investments in
associate companies 1.9 1.3 0.9 0.5 2.2
IAS 32 Own shares -0.8 -0.8 -0.8 -0.8 0.8
IAS 39 Shares in listed
companies 1.3 1.1 1.3 1.4 1.4
IAS 39 Derivatives -0.7 -0.5 0.2 -0.4 -0.5
Shareholders' equity, IFRS 99.9 95.0 98.0 102.0 106.8
RECONCILIATION OF SHAREHOLDERS' EQUITY AT 1 JANUARY 2004 (DATE OF TRANSITION TO
IFRSs)
JAN 1 JAN 1 Effect of transition
2004 2004 to IFRSs
IFRS FAS
ASSETS
Non-current assets
Tangible assets (7) 85.3 65.6 19.7
Goodwill (1) 17.6 17.6 0.0
Other intangible
assets 3.5 4.0 -0.5
Investments in associate
companies (6) 22.3 20.4 1.9
Available-for-sale
financial assets (9) 2.7 1.4 1.3
Own shares (3) 0.0 0.8 -0.8
Deferred tax assets (8) 2.4 0.4 2.0
133.9 110.3 23.6
Current assets
Inventories (12) 83.7 80.2 3.5
Receivables 46.7 46.2 0.5
Financial instruments at fair value
through profit or loss 1.0 1.0 0.0
Cash and cash equivalents 12.1 12.1 0.0
143.4 139.5 4.0
Total assets 277.2 249.7 27.5
Non-current liabilities
Long-term borrowings (7) 66.8 43.9 22.9
Deferred tax liabilities (8) 6.8 4.4 2.4
Non-current provisions (5) 1.0 1.0 0.0
74.6 49.3 25.3
Current liabilies
Trade payables and
other liabilities 73.2 71.3 1.9
Short-term borrowings 28.5 28.1 0.4
Current provisions (5) 1.0 1.0 0.0
102.7 100.4 2.3
Total liabilities 177.3 149.7 27.6
Total assets less
total liabilities 99.9 100.0 -0.1
Share capital 12.2 12.2 0.0
Share issue premium 21.4 21.4 0.0
Own shares (3) 0.0 0.8 -0.8
Net unrealised gains
and other reserves 8.2 7.3 0.9
Translation differences -0.5 -0.5 0.0
Retained earnings 54.3 52.1 2.1
Subordinated loans 0.0 1.7 -1.7
Shareholders' equity, FAS,
total 95.7 95.1 0.6
Minority interest 4.3 4.9 -0.6
Shareholders' equity, IFRS,
total 99.9 100.0 -0.1
Equity ratio % 36.8 % 40.0 %
Shareholders' equity
per share, EUR 16.33 15.35
COMPARATIVE IFRS INFORMATION Q1 2004
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUING OPERATIONS, TOTAL
IFRS FAS DIFFERENCE
Q1 Q1
2004 2004
Net sales 123.9 123.9 0.0
Other operating income 1.6 0.7 0.9
Operating expenses -122.5 -121.6 -0.9
Depreciations -2.2 -2.9 0.7
Share of profits of
associate companies, FAS (6 0.5
Operating profit/loss (6) 0.8 0.5 0.3
Financial income and expenses -1.2 -0.8 -0.4
Share of profits of
associate companies, IFRS (6) -0.2
Profit/loss before taxes -0.6 -0.3 -0.3
Income taxes -0.3 -0.3 0.0
Profit/loss for the period -0.9 -0.6 -0.3
Attributable to:
Equity holders of the parent-0.3 0.0 -0.3
Minority interest -0.5 -0.6 0.1
Earnings per share, EUR -0.05 0.00 -0.05
Diluted earnings per share, EUR -0.05 0.00 -0.05
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
IFRS FAS DIFFERENCE
Q1 Q1
2004 2004
Net sales 103.2 103.2 0.0
Other operating income 1.5 0.6 0.9
Operating expenses -100.5 -99.5 -1.0
Depreciations -1.9 -2.6 0.7
Share of profit of
associate companies, FAS (6) 0.5
Operating profit/loss (6) 2.3 2.1 0.2
Financial income and expenses -0.9 -0.5 -0.4
Share of profit of
associate companies, IFRS (6) -0.2
Profit/loss before taxes 1.2 1.5 -0.3
Income taxes -0.3 -0.3 0.0
Profit/loss for the period 0.9 1.2 -0.3
Attributable to:
Equity holders of the parent 0.8 1.1 -0.3
Minority interest 0.1 0.1 0.0
Earnings per share, EUR 0.12 0.30 -0.18
Diluted earnings per share, EUR 0.12 0.30 -0.18
CONSOLIDATED INCOME STATEMENT - DISCONTINUING OPERATIONS
IFRS FAS DIFFERENCE
Q1 Q1
2004 2004
Net sales 20.7 20.7 0.0
Other operating income 0.1 0.1 0.0
Operating expenses -22.0 -22.1 0.1
Depreciations -0.3 -0.3 0.0
Operating profit/loss (6) -1.5 -1.6 0.1
Financial income and expenses -0.3 -0.3 0.0
Profit/loss before taxes -1.8 -1.8 0.0
Income taxes 0.0 0.0 0.0
Profit/loss for the period -1.8 -1.8 0.0
Attributable to:
Equity holders of the parent-1.1 -1.1 0.0
Minority interest -0.7 -0.7 0.0
CONSOLIDATED BALANCE SHEET
IFRS FAS DIFFERENCE
MAR 31 MAR 31
2004 2004
ASSETS
Non-current assets
Tangible assets (7) 84.1 64.8 19.3
Goodwill (1) 17.6 16.8 0.8
Other intangible assets 3.6 4.0 -0.4
Investments in associate companies (6) 22.2 20.9 1.3
Available-for-sale financial assets (9) 2.6 1.4 1.2
Own shares (3) 0.0 0.8 -0.8
Deferred tax assets (8) 2.4 0.5 1.9
132.5 109.2 23.3
Current assets
Inventories (12) 76.0 73.3 2.7
Receivables 43.1 42.8 0.3
Financial assets at fair value
through profit or loss 0.5 0.5 0.0
Cash and cash equivalents 17.6 17.6 0.0
137.2 134.2 3.0
Total assets 269.7 243.4 26.3
EQUITY AND LIABILITIES
Shareholders' equity attributable to
equity holders of the parent 91.7 91.5 0.2
Minority interest 3.3 3.9 -0.6
Total equity 95.0 95.3 -0.4
Non-current liabilities
Long-term borrowings (7) 66.4 44.0 22.4
Deferred tax liabilities (8) 6.7 4.3 2.4
Non-current provisions (5) 1.0 1.0 0.0
74.1 49.3 24.8
Current liabilities
Trade payables and other liabilities 68.3 66.7 1.5
Short-term borrowings (7) 31.3 30.9 0.4
Current provisions (5) 1.0 1.0 0.0
96.6 94.7 1.9
Total equity and liabilities 269.7 243.4 26.3
Equity ratio % 35.3 % 38.4 % -3.1 %
Shareholders' equity per share, EUR 15.68 14.82 0.86
NET SALES BY BUSINESS SEGMENTS (2)
IFRS FAS DIFFERENCE
Q1 2004 Q1 2004
Food Division 25.1 25.1 0.0
Feed Division 47.1 47.1 0.0
Grain Trading Division 29.6 29.6 0.0
Other operations 1.3 1.3 0.0
Discontinuing operations 20.7 20.7 0.0
Total 123.9 123.9 0.0
OPERATING PROFIT/LOSS BY BUSINESS SEGMENTS (2)
IFRS FAS DIFFERENCE
Q1 Q1
2004 2004
Food Division 0.1 0.7 -0.6
Feed Division 2.2 1.2 1.0
Grain Trading Division 1.0 0.7 0.3
Other operations -0.9 -1.1 0.2
Discontinuing operations -1.6 -1.6 0.0
Share of profit of
associate companies, FAS 0.5
Total 0.8 0.5 0.3
NET SALES BY GEOGRAPHICAL SEGMENTS (2) - ACCORDING TO CUSTOMER LOCATION
IFRS FAS DIFFERENCE
Q1 2004 Q1 2004
Finland 85.8 85.8 0.0
Other EU member states 20.8 20.8 0.0
Other countries 17.3 17.3 0.0
Total 123.9 123.9 0.0
COMPARATIVE IFRS INFORMATION Q2 2004
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUING OPERATIONS, TOTAL
IFRS FAS IFRS FAS
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 DIFF. 2004 2004 DIFF.
Net sales 254.3 254.3 0.0 130.5 130.5 0.0
Other operating
income 3.7 2.6 1.1 2.1 1.9 0.2
Operating expenses -254.3 -252.6 -1.7 -131.8 -131.0 -0.8
Depreciations -4.4 -5.8 1.4 -2.2 -2.9 0.7
Share of profits
of associate
companies, FAS (6) 1.0 0.5
Operating
profit/loss (6) -0.6 -0.6 0.9 -1.5 -1.0 -0.5
Financial income
and expenses -0.7 -0.6 -0.1 0.5 0.1 0.4
Share of profits
of associate
companies, IFRS (6) 0.0 0.1
Profit/loss
before taxes -1.4 -1.2 -0.2 -0.8 -0.9 0.1
Income taxes -1.3 -1.2 -0.1 -1.0 -0.8 -0.2
Profit/loss for
the period -2.7 -2.4 -0.3 -1.8 -1.7 -0.1
Attributable to:
Equity holders
of the parent -2.2 -1.9 -0.3 -1.9 -1.9 0.0
Minority interest-0.5 -0.5 0.0 0.1 0.1 0.0
Earnings per
share, EUR -0.37 -0.31 -0.06 -0.32 -0.31 -0.01
Diluted earnings
per share. EUR -0.37 -0.31 -0.06 -0.32 -0.31 -0.01
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 2004 2004
Net sales 205.4 205.4 0.0 102.1 102.1 0.0
Other operating
income 2.5 1.4 1.1 1.0 0.8 0.2
Operating expenses -199.2 -197.6 -1.6 -98.6 -98.0 -0.6
Depreciations -3.8 -5.3 1.5 -1.9 -2.7 0.8
Share of profits
of associate
companies, FAS (6) 1.0 0.5
Operating profit
/loss (6) 4.9 4.8 0.1 2.5 2.9 -0.4
Financial income
and expenses -0.3 -0.2 -0.1 0.8 0.3 0.5
Share of profits
of associate
companies, IFRS (6) 0.0 0.0
Profit/loss
before taxes 4.6 4.6 0.0 3.3 3.1 0.2
Income taxes -1.3 -1.2 -0.1 -1.0 -0.8 -0.2
Profit/loss
for the period 3.3 3.4 -0.1 2.3 2.3 0.0
Attributable to:
Equity holders
of the parent 3.0 3.2 -0.2 2.2 2.1 0.1
Minority interest 0.3 0.2 0.1 0.2 0.1 0.1
Earnings per share, EUR 0.49 0.65 -0.16 0.37 0.32 0.05
Diluted earnings
per share, EUR 0.49 0.65 -0.16 0.37 0.32 0.05
CONSOLIDATED INCOME STATEMENT - DISCONTINUING OPERATIONS
IFRS FAS IFRS FAS
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 DIFF. 2004 2004 DIFF.
Net sales 49.0 49.0 0.0 28.3 28.3 0.0
Other operating income 1.2 1.2 0.0 1.1 1.1 0.0
Operating expenses -55.1 -55.0 -0.1 -33.2 -33.0 -0.2
Depreciations -0.6 -0.5 -0.1 -0.3 -0.2 -0.1
Operating
profit/loss (6) -5.6 -5.4 -0.2 -4.0 -3.9 -0.1
Financial income
and expenses -0.4 -0.4 0.0 -0.2 -0.2 0.0
Profit/loss
before taxes -6.0 -5.8 -0.2 -4.2 -4.0 -0.2
Income taxes 0.0 0.0 0.0 0.0 0.0 0.0
Profit/loss
for the period -6.0 -5.8 -0.2 -4.2 -4.0 -0.2
Attributable to:
Equity holders
of the parent -5.2 -5.1 -0.1 -4.1 -4.0 -0.1
Minority interest-0.8 -0.7 -0.1 -0.1 0.0 -0.1
CONSOLIDATED BALANCE SHEET
IFRS FAS DIFFERENCE
JUN 30 JUN 30
2004 2004
ASSETS
Non-current assets
Tangible assets (7) 91.6 71.4 20.2
Goodwill (1) 17.7 16.0 1.7
Other intangible assets 3.6 3.6 0.0
Investments in
associate companies (6) 22.3 21.4 0.9
Long-term receivables 0.4 0.4 0.0
Available-for-sale
financial assets (9) 2.7 1.4 1.3
Own shares (3) 0.0 0.8 -0.8
Deferred tax assets (8) 2.6 0.9 1.7
140.9 115.9 25.0
Current assets
Inventories (12) 60.0 57.8 2.2
Receivables 48.7 48.1 0.6
Financial assets at fair value
through profit or loss 0.5 0.5 0.0
Cash and cash equivalents 12.4 12.4 0.0
121.6 118.8 2.8
Total assets 262.6 234.8 27.8
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 92.1 91.9 0.2
Minority interest 5.8 5.4 0.4
Total equity 98.0 97.3 0.7
Non-current liabilities
Long-term borrowings (7) 64.1 41.5 22.6
Deferred tax liabilities (8) 7.5 4.5 3.0
Non-current provisions (5) 1.0 1.0 0.0
72.6 47.0 25.6
Current liabilities
Trade payables and
other liabilities 61.0 59.9 1.1
Short-term borrowings (7) 26.0 25.7 0.3
Current provisions (5) 4.9 4.9 0.0
91.9 90.5 1.4
Total equity and liabilities 262.6 234.8 27.8
Equity ratio % 37.3 % 40.6 % -3.3 %
Shareholders' equity
per share, EUR 15.67 14.30 1.37
NET SALES BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 2004 2004
Food Division 54.3 54.3 0.0 29.4 29.4 0.0
Feed Division 93.1 93.1 0.0 46.0 46.0 0.0
Grain Trading
Division 53.1 53.1 0.0 23.4 23.4 0.0
Other operations 4.9 4.9 0.0 3.3 3.3 0.0
Discontinuing
operations 48.9 48.9 0.0 28.3 28.3 0.0
Total 254.3 254.3 0.0 130.4 130.4 0.0
OPERATING PROFIT/LOSS BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 2004 2004
Food Division 0.4 1.6 -1.2 0.3 0.8 -0.5
Feed Division 4.4 2.8 1.6 2.2 1.5 0.6
Grain Trading
Division 1.4 1.3 0.1 0.4 0.5 -0.1
Other operations -1.3 -1.8 0.5 -0.4 -0.6 0.3
Discontinuing
operations -5.6 -5.4 -0.2 -4.0 -3.9 -0.1
Share of profits
of associate
companies, FAS 1.0 0.5
Total -0.7 -0.6 -0.1 -1.5 -1.0 -0.5
NET SALES BY GEOGRAPHICAL SEGMENTS (2) - ACCORDING TO CUSTOMER LOCATION
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q2 Q1-Q2 Q2 Q2
2004 2004 2004 2004
Finland 184.0 184.0 0.0 98.2 98.2 0.0
Other EU member
states 45.3 45.3 0.0 24.5 24.5 0.0
Other countries 25.0 25.0 0.0 7.7 7.7 0.0
Total 254.3 254.3 0.0 130.4 130.4 0.0
COMPARATIVE IFRS INFORMATION Q3 2004
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUING OPERATIONS. TOTAL
IFRS FAS IFRS FAS
Q1-Q3 Q1-Q3 Q3 Q3
2004 2004 DIFF. 2004 2004 DIFF.
Net sales 361.4 361.4 0.0 107.0 107.0 0.0
Other operating
income 3.8 2.9 0.9 0.1 0.4 -0.3
Operating expenses -353.8 -353.7 -0.1 -99.5 -101.1 1.6
Depreciations -6.6 -8.7 2.1 -2.2 -2.9 0.7
Share of profits
of associate
companies, FAS (6) 1.7 0.7
Operating
profit/loss (6) 4.8 3.5 0.9 5.4 4.1 1.3
Financial income
and expenses -1.4 -1.1 -0.3 -0.6 -0.5 -0.1
Share of profits
of associate
companies, IFRS (6) 0.3 0.3
Profit/loss
before taxes 3.7 2.4 1.3 5.1 3.6 1.5
Income taxes -1.2 -0.9 -0.3 0.1 0.3 -0.2
Profit/loss
for the period 2.5 1.5 1.0 5.2 3.9 1.3
Attributable to:
Equity holders
of the parent 2.0 1.1 0.9 4.2 3.0 1.2
Minority interest 0.5 0.4 0.1 1.0 0.9 0.1
Earnings per share, EUR 0.32 0.17 0.15 0.69 0.48 0.21
Diluted earnings
per share, EUR 0.32 0.17 0.15 0.69 0.48 0.21
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q3 Q1-Q3 Q3 Q3
2004 2004 2004 2004
Net sales 312.5 312.5 0.0 107.0 107.0 0.0
Other operating
income 2.6 1.7 0.9 0.1 0.4 -0.3
Operating expenses -301.0 -299.9 -1.1 -101.7 -102.3 0.6
Depreciations -6.0 -8.2 2.2 -2.2 -2.9 0.7
Share of profits
of associate
companies, FAS (6) 1.7 0.7
Operating
profit/loss (6) 8.1 7.7 0.4 3.2 2.9 0.3
Financial income
and expenses -1.0 -0.7 -0.3 -0.6 -0.5 -0.1
Share of profits
of associate
companies, IFRS (6) 0.3 0.3
Profit/loss
before taxes 7.4 7.0 0.4 2.9 2.4 0.5
Income taxes -1.2 -0.9 -0.3 0.1 0.3 -0.2
Profit/loss
for the period 6.2 6.1 0.1 3.0 2.7 0.3
Attributable to:
Equity holders
of the parent 5.7 5.7 0.0 2.8 2.5 0.3
Minority interest 0.5 0.4 0.1 0.2 0.2 0.0
Earnings per
share, EUR 0.94 0.93 0.01 0.46 0.29 0.17
Diluted earnings
per share, EUR 0.94 0.93 0.01 0.46 0.29 0.17
CONSOLIDATED INCOME STATEMENT - DISCONTINUING OPERATIONS
IFRS FAS IFRS FAS
Q1-Q3 Q1-Q3 Q3 Q3
2004 2004 DIFF. 2004 2004 DIFF.
Net sales 48.9 48.9 0.0 0.0 0.0 0.0
Other operating
income 1.2 1.2 0.0 0.0 0.0 0.0
Operating expenses -52.8 -53.8 1.0 2.2 1.2 1.0
Depreciations -0.6 -0.5 -0.1 0.0 0.0 0.0
Operating
profit/loss (6) -3.3 -4.2 0.9 2.2 1.2 1.0
Financial income and
expenses -0.4 -0.4 0.0 0.0 0.0 0.0
Profit/loss
before taxes -3.7 -4.6 0.9 2.2 1.2 1.0
Income taxes 0.0 0.0 0.0 0.0 0.0 0.0
Profit/loss
for the period -3.7 -4.6 0.9 2.2 1.2 1.0
Attributable to:
Equity holders
of the parent -3.7 -4.6 0.9 1.4 0.5 0.9
Minority interest 0.0 0.0 0.0 0.8 0.7 0.1
CONSOLIDATED BALANCE SHEET
IFRS FAS DIFFERENCE
SEP 30 SEP 30
2004 2004
ASSETS
Non-current assets
Tangible assets (7) 70.7 70.0 0.7
Goodwill (1) 17.4 14.8 2.6
Other intangible assets 2.8 2.9 -0.1
Investments in associate
companies (6) 21.1 20.6 0.5
Available-for-sale
financial assets (9) 2.8 1.4 1.4
Own shares (3) 0.0 0.8 -0.8
Deferred tax assets (8) 2.3 0.5 1.8
117.1 111.0 6.1
Current assets
Inventories (12) 46.1 43.5 2.6
Receivables 38.2 38.0 0.2
Financial assets at fair value
through profit or loss 0.5 0.5 0.0
Cash and cash equivalents 8.1 8.1 0.0
92.9 90.1 2.8
Total assets 210.1 201.1 9.0
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 96.4 93.1 3.3
Minority interest 5.6 4.6 1.0
Total equity 102.0 97.7 4.3
Non-current liabilities
Long-term borrowings (7) 30.5 30.5 0.0
Deferred tax liabilities (8) 7.8 4.6 3.2
Non-current provisions (5) 1.0 1.0 0.0
39.3 36.1 3.2
Current liabilities
Trade payables and
other liabilities 55.3 54.0 1.3
Short-term borrowings (7) 12.3 12.2 0.1
Current provisions (5) 1.2 1.2 0.0
68.8 67.4 1.4
Total equity and liabilities 210.1 201.1 9.0
Equity ratio % 48.5 % 48.4 % 0.1 %
Shareholders' equity
per share, EUR 16.31 14.76 1.55
NET SALES BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q3 Q1-Q3 Q3 Q3 2004
2004 2004 2004
Food Division 92.7 92.7 0.0 38.2 38.2 0.0
Feed Division 142.0 142.0 0.0 48.9 48.9 0.0
Grain Trading
Division 71.5 71.5 0.0 18.5 18.5 0.0
Other operations 6.2 6.2 0.0 1.4 1.4 0.0
Discontinuing
operations 48.9 48.9 0.0 0.0 0.0 0.0
Total 361.3 361.3 0.0 107.0 107.0 0.0
OPERATING PROFIT/LOSS BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q3 Q1-Q3 Q3 Q3
Food Division 1.9 2.5 -0.6 1.5 1.0 0.5
Feed Division 7.3 5.0 2.3 3.0 2.2 0.8
Grain Trading
Division 1.7 1.6 0.1 0.3 0.3 0.0
Other operations -2.8 -3.0 0.2 -1.7 -1.3 -0.4
Discontinuing
operations -3.3 -4.2 0.9 2.2 1.2 1.0
Share of profits
of associate
companies, FAS 1.7 0.7
Total 4.8 3.5 1.3 5.4 4.1 1.3
NET SALES BY GEOGRAPHICAL SEGMENTS (2) - ACCORDING TO CUSTOMER LOCATION
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q3 Q1-Q3 Q3 Q3
2004 2004 2004 2004
Finland 283.1 283.1 0.0 99.1 99.1 0.0
Other EU
member states 52.5 52.5 0.0 7.2 7.2 0.0
Other countries 25.8 25.8 0.0 0.8 0.8 0.0
Total 361.4 361.4 0.0 107.1 107.1 0.0
COMPARATIVE IFRS INFORMATION Q4 2004
CONSOLIDATED INCOME STATEMENT - CONTINUING AND DISCONTINUING OPERATIONS. TOTAL
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Net sales 473.8 473.8 0.0 112.4 112.4 0.0
Other operating
income 4.1 3.4 0.7 0.3 0.4 -0.1
Operating expenses -457.8 -459.4 1.6 -104.1 -105.7 1.6
Depreciations -8.7 -11.5 2.8 -2.1 -2.8 0.7
Share of profits
of associate
companies, FAS (6) 2.5 0.8
Operating
profit/loss (6) 11.4 8.7 0.9 6.7 5.2 1.5
Financial income
and expenses -1.5 -1.1 -0.4 -0.2 0.0 -0.2
Share of profits
of associate
companies, IFRS (6) 2.7 2.4
Profit/loss
before taxes 12.6 7.7 4.9 8.9 5.2 3.7
Income taxes -2.1 -1.4 -0.7 -0.9 0.5 -1.4
Profit/loss
for the period 10.5 6.2 4.3 8.0 4.7 3.3
Attributable to:
Equity holders
of the parent 10.4 6.0 4.4 8.5 4.9 3.6
Minority interest 0.1 0.2 -0.1 -0.4 -0.2 -0.2
Earnings per share, EUR 1.68 0.97 0.71 1.38 0.81 0.57
Diluted earnings
per share, EUR 1.68 0.97 0.71 1.38 0.81 0.57
CONSOLIDATED INCOME STATEMENT - CONTINUING OPERATIONS
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Net sales 424.9 424.9 0.0 112.4 112.4 0.0
Other operating
income 2.9 2.2 0.7 0.3 0.4 -0.1
Operating expenses -405.0 -405.6 0.6 -104.1 -105.7 1.6
Depreciations -8.1 -11.0 2.9 -2.1 -2.8 0.7
Share of profits
of associate
companies, FAS (6) 2.5 0.8
Operating
profit/loss (6) 14.7 12.9 1.8 6.7 5.2 1.5
Financial income
and expenses -1.1 -0.7 -0.4 -0.2 0.0 -0.2
Share of profits
of associate
companies, IFRS (6) 2.7 2.4
Profit/loss
before taxes 16.3 12.3 4.0 8.9 5.2 3.7
Income taxes -2.1 -1.4 -0.7 -0.9 0.5 -1.4
Profit/loss
for the period 14.2 10.8 3.4 8.0 4.7 3.3
Attributable to:
Equity holders
of the parent 14.1 10.6 3.5 8.5 4.9 3.6
Minority interest 0.1 0.2 -0.1 -0.4 -0.2 -0.2
Earnings per share, EUR 2.30 1.72 0.58 1.38 0.81 0.57
Diluted earnings
per share,EUR 2.30 1.72 0.58 1.38 0.81 0.57
CONSOLIDATED INCOME STATEMENT - DISCONTINUING OPERATIONS
IFRS FAS IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 DIFF. 2004 2004
Net sales 48.9 48.9 0.0 0.0 0.0 0.0
Other operating
income 1.2 1.2 0.0 0.0 0.0 0.0
Operating expenses -52.8 -53.8 1.0 0.0 0.0 0.0
Depreciations -0.6 -0.5 -0.1 0.0 0.0 0.0
Operating
profit/loss (6) -3.3 -4.2 0.9 0.0 0.0 0.0
Financial income
and expenses -0.4 -0.4 0.0 0.0 0.0 0.0
Profit/loss
before taxes -3.7 -4.6 0.9 0.0 0.0 0.0
Income taxes 0.0 0.0 0.0 0.0 0.0 0.0
Profit/loss
for the period -3.7 -4.6 0.9 0.0 0.0 0.0
Attributable to:
Equity holders
of the parent -3.7 -4.6 0.9 0.0 0.0 0.0
Minority interest 0.0 0.0 0.0 0.0 0.0 0.0
CONSOLIDATED BALANCE SHEET
IFRS FAS DIFFERENCE
DEC 31 DEC 31
2004 2004
ASSETS
Non-current assets
Tangible assets (7) 70.0 69.4 0.6
Goodwill (1) 17.4 14.0 3.4
Other intangible assets 2.5 2.6 -0.1
Investments in
associate companies (6) 23.5 21.4 2.1
Available-for-sale
financial assets (9) 2.9 1.4 1.5
Own shares (3) 0.0 0.8 -0.8
Deferred tax assets (8) 2.2 0.7 1.5
118.5 110.2 8.2
Current assets
Inventories (12) 49.5 46.0 3.5
Receivables 37.2 37.0 0.2
Financial assets at fair value
through profit or loss 0.5 0.5 0.0
Cash and cash equivalents 9.7 9.7 0.0
97.0 93.2 3.7
Total assets 215.4 203.5 11.9
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent 104.3 97.5 6.8
Minority interest 2.5 1.6 0.9
Total equity 106.8 99.1 7.7
Non-current liabilities
Long-term borrowings (7) 23.1 23.1 0.0
Deferred tax liabilities (8) 7.5 4.1 3.4
Non-current provisions (5) 1.0 1.0 0.0
32.7 28.2 3.4
Current liabilities
Trade payables and
other liabilities 52.7 51.9 0.8
Short-term borrowings (7) 23.3 23.2 0.1
Current provisions (5) 1.0 1.0 0.0
76.0 76.1 0.9
Total equity and liabilities 215.4 203.5 11.9
Equity ratio % 49.6 % 48.5 % 1.1 %
Shareholders' equity
per share, EUR 17.08 15.47 1.61
NET SALES BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Food Division 130.6 130.6 0.0 37.9 37.9 0.0
Feed Division 194.8 194.8 0.0 52.8 52.8 0.0
Grain Trading
Division 91.0 91.0 0.0 19.4 19.4 0.0
Other operations 8.5 8.5 0.0 2.3 2.3 0.0
Discontinuing
operations 48.9 48.9 0.0
Total 473.8 473.8 0.0 112.4 112.4 0.0
OPERATING PROFIT/LOSS BY BUSINESS SEGMENTS (2)
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Food Division 4.1 3.9 0.2 2.2 1.4 0.8
Feed Division 11.7 8.4 3.3 4.6 3.5 1.1
Grain Trading
Division 0.9 1.9 -1.0 -0.8 0.4 -1.2
Other operations -2.0 -3.8 1.8 0.6 -0.7 1.3
Discontinuing
operations -3.3 -4.2 0.9 0.0 0.0 0.0
Share of profits
of associate
companies (FAS) 2.5 0.8
Total 11.4 8.7 2.7 6.7 5.2 1.5
NET SALES BY GEOGRAPHICAL SEGMENTS (2) - ACCORDING TO CUSTOMER LOCATION
IFRS FAS DIFF. IFRS FAS DIFF.
Q1-Q4 Q1-Q4 Q4 Q4
2004 2004 2004 2004
Finland 383.2 383.2 0.0 100.1 100.1 0.0
Other EU
member states 59.6 59.6 0.0 7.1 7.1 0.0
Other countries 31.0 31.0 0.0 5.2 5.2 0.0
Total 473.8 473.8 0.0 112.4 112.4 0.0
LÄNNEN TEHTAAT PLC
Erkki Lepistö
CEO
Further information: Erkki Lepistö, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
www.lannen
