ATRIA GROUP'S POSITIVE RESULT DEVELOPMENT CONTINUED
ATRIA GROUP PLC'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
ATRIA GROUP'S POSITIVE RESULT DEVELOPMENT CONTINUED
- Group turnover was EUR 935.1 million (EUR 805.0 million), growth 16.2 per
cent
- Operating profit (EBIT) amounted to EUR 81.3 million (EUR 23.7 million)
- Comparable operating profit was EUR 47.7 million (EUR 23.7 million)
- Earnings per share amounted to EUR 2.32 (EUR 0.58)
Atria Group:
Q3/ Q3/ Q1-Q3/ Q1-Q3/
Million euro 2007 2006 2007 2006 2006
-------------------------------------------------------------------------------
Turnover 312.8 281.7 935.1 805.0 1,103.3
Operating profit 19.3 12.7 81.3 23.7 41.5
Comparable operating profit 19.9 12.7 47.7 23.7 33.5
Comparable operating profit % 6.4 4.5 5.1 2.9 3.0
Profit before tax 16.1 10.6 69.3 19.6 34.6
Earnings per share 0.41 0.33 2.32 0.58 1.15
Review Q3/2007
Atria Group's turnover and operating profit for the third quarter grew strongly
compared to the corresponding period last year (growth of turnover 11.0 per
cent and growth of comparable operating profit 56.7 per cent). The comparable
operating profit for the period was EUR 19.9 million.
In Finland, Atria's turnover for the third quarter increased by 8.1 per cent
compared to the same period last year, amounting to EUR 187.4 million (EUR
173.4 million). The comparable operating profit totalled EUR 12.2 million (EUR
11.4 million). During the review period, Atria Finland Ltd negotiated with
Pouttu Oy concerning an entire stock purchase of Liha-Pouttu Oy. The
acquisition target was Liha-Pouttu Oy's meat procurement, slaughtering and meat
cutting operations. The competitive authority approved the acquisition on 21
September 2007 and the deal was closed on 1 October 2007.
In Scandinavia (Sweden and Denmark), turnover for the third quarter amounted to
EUR 108.6 million (EUR 87.8 million). Operating profit grew to EUR 6.7 million
(EUR 3.4 million). During the review period, Atria Scandinavia has progressed
in integrating Sardus with Atria's operations as planned. Seven business units
were established in Atria Scandinavia. In addition, Atria Scandinavia announced
a approx. EUR one million investment in convenience food production in Malmö.
After the review period, a rationalization programme in the Sardus Lätta
Måltider unit was announced.
In Russia, negotiations to acquire new customers in Moscow and other large
cities continued in Q3. The turnover decreased in the third quarter because
Atria Russia did not take part in the price competition. The cost structure is
now clearly lower than last year thanks to reorganisations carried out during
the spring. The Q3 result was clearly better than in the corresponding period
last year, amounting to EUR 1.1 million (EUR -0.7 million).
In the Baltic countries, the operating profit has continued to develop
positively due to the closure of the Lithuanian factory and the reorganisation
in Estonia. The Q3 operating profit improved clearly to EUR -0.1 million (EUR -
1.4 million).
Atria Finland
Q3/ Q3/ Q1-Q3/ Q1-Q3/
Million euro 2007 2006 2007 2006 2006
-------------------------------------------------------------------------------
Turnover 187.4 173.4 545.7 506.2 686.1
Operating profit 12.2 11.4 31.1 22.7 34.0
Comparable operating profit 12.2 11.4 31.1 22.7 32.2
Comparable operating profit % 6.5 6.6 5.7 4.5 4.7
The beginning of the year has continued to be excellent in Atria's food product
market - the total growth in value of the market has been 5.4 per cent. After
nine months, the best growing product group is still retail packed poultry
(+18.0%).
The development of the Atria brand has continued to be strong in comparison
with the market. The total growth of the Atria brand since the beginning of the
year has been 12.1 per cent (industry growth 5.4 per cent) during the first
nine months of the year. The development of products produced under the Atria
brand has been stronger than the growth of the market in all product groups
(Nielsen, weeks 1-39/2007). Atria's supplier share after nine months is 30.5
per cent and thus Atria has further strengthened its market leader position
this year.
The summer season was a success for Atria. The success of basic products and
new products resulted in our market share increasing in all other product
groups apart from sausages; however, Atria did maintain its market leader
position in grill sausages during the summer (May-August). During the period,
Atria was particularly successful in launching new products, the poultry
product group and in summer sales of grill meat. In Finland, products sold
under the Atria brand are always made from Finnish meat raw material in all
product groups.
The implementation of the new logistics centre has progressed according to
plan, laying the ground for the successful summer deliveries. Atria has
continued its efforts to improve the cost efficiency of these operations.
During the review period, Atria Finland Ltd negotiated with Pouttu Oy
concerning an entire stock purchase of Liha-Pouttu Oy. The acquisition target
was Liha-Pouttu Oy's meat procurement, slaughtering and meat cutting
operations. The competitive authority approved the acquisition on 21 September
2007 and the deal was closed on 1 October 2007.
Packing of retail-packed meat is not included in the purchase. In connection
with the deal, Atria and Pouttu signed a cooperation agreement concerning meat
deliveries from Atria to Jaloste-Pouttu Oy. Along with the acquisition, Atria
increases its cost-efficiency in meat purchasing and cutting operations as
purchasing volumes grow from 140 million kg to approximately 155 million kg.
Due to the transaction Atria Finland Ltd's turnover is estimated to grow by
approximately EUR 25 million per year, of which approximately EUR 5 million
will occur in Q4/2007.
Atria Scandinavia
Q3/ Q3/ Q1-Q3/ Q1-Q3/
Million euro 2007 2006 2007 2006 2006
-------------------------------------------------------------------------------
Turnover 108.6 87.8 341.8 240.4 336.4
Operating profit 6.7 3.4 49.4 5.7 15.1
Operating profit
from operations 6.7 3.4 14.6 5.7 7.4
Operating profit
from operations % 6.2 3.9 4.3 2.4 2.2
Footnote: Includes Sardus AB from 1.4.07 onwards and excludes Svensk Snabbmat
AB starting 1.6.07
Turnover grew by 23.7 per cent in the review period and operating profit nearly
doubled compared to the corresponding period last year. The operating profit
for the period includes some integration costs. During the review period, Atria
increased its marketing efforts in its strategic brands considerably.
Sector growth in Atria's product groups has been strongest in cold cuts (+7%)
and in fresh convenience foods (+6.5%). Atria has simultaneously increased its
own market share in both cold cuts and liver pate products. Atria have a
particularly strong market position in cold cuts and in the salad and sandwich
product groups. The development of the sausage market has been stable, where
Atria holds a number 2 position with 13% share. In the future Atria
Scandinavia's focus areas for growth will be sandwich toppings, convenience
food, delicacies and sausage.
Atria acquired AB Sardus last spring and its integration into Atria Sweden's
operations started in April as soon as the deal was confirmed. The synergy
benefits from the integration are minimum EUR 10 million. Atria Scandinavia's
operations were divided into seven business units:
- Atria Chark & Deli (meat products and convenience food for retail customers)
- Atria Foodservice (meat products and convenience food for Horeca business)
- 3-Stjernet (cold cuts in Denmark)
- Sardus Lätta Måltider (sandwiches and salads)
- Falbydens Ost (speciality cheeses)
- Sardus Foodpartner (frozen food for Horeca business)
- Atria Concept (Sibylla fast food concept)
After the review period, Atria Scandinavia announced a rationalization
programme within the Sardus Lätta Måltider business unit. The production of
sandwiches and salads will be centralised in the Norrköping and Halmstad
factories and production in the Stockholm factory ends. The redundancy applies
to 58 employees in Stockholm, 24 employees in Halmstad and 15 employees in
Norrköping.
After the rationalization the Sardus Lätta Måltider -unit will employ in total
170 employees and have a distribution centre in the Stockholm area.
At the beginning of October, Atria Scandinavia signed a long-term agreement
concerning deliveries of fresh convenience food to ICA in Sweden. Due to the
agreement, Atria will invest approx. EUR one million in convenience food
production at the Fosie factory in Malmö. The product selection includes ready-
made meals that have been developed in cooperation with ICA and are marketed
under the ICA brand.
Atria Russia
Q3/ Q3/ Q1-Q3/ Q1-Q3/
Million euro 2007 2006 2007 2006 2006
-------------------------------------------------------------------------------
Turnover 15.6 20.4 48.7 54.1 74.1
Operating profit 1.1 -0.7 3.8 -2.3 -2.7
Comparable operating profit 1.1 -0.7 3.8 -2.3 -2.7
Comparable operating profit % 7.1 -3.4 7.8 -4.3 -3.6
In Russia, negotiations to start business with new customers in Moscow and
other large cities continued in Q3. Compared to the corresponding period last
year the result improved considerably, which was caused by the price increases
implemented during the spring and a lower cost structure, due to the closure of
a factory located in the centre of St. Petersburg.
The sales growth in new cold cuts products has continued positively. The
turnover decreased in the review period because Atria Russia did not take part
in the price competition, which also resulted in a slight decrease in its
market share in the St. Petersburg area.
Raw material prices and salary costs increased slightly during the review
period. In addition, marketing spending was clearly higher than in the
corresponding period last year.
Atria Baltic
Q3/ Q3/ Q1-Q3/ Q1-Q3/
Million euro 2007 2006 2007 2006 2006
-------------------------------------------------------------------------------
Turnover 6.4 7.8 20.6 22.8 30.5
Operating profit -0.7 -1.4 -3.0 -2.4 -4.9
Comparable operating profit -0.1 -1.4 -1.8 -2.4 -3.4
Comparable operating profit % -1.6 -17.9 -8.7 -10.5 -11.1
Thanks to implemented price increases and a successful summer season, the
positive development of operating profit continued during the review period,
but the profitability of operations was still unsatisfactory. The cost
efficiency of industrial operations and primary production improved further
during the review period within the ongoing investment programme (EUR 8
million).
The shut-down of operations in Lithuania caused a non-recurring cost item of
EUR 0.6 million during the review period.
After the review period, Atria Baltic's and Russia's operations were
reorganised. Atria Baltic's operations became the responsibility of Juha Gröhn
from 1 November 2007. Mr. Gröhn will continue as the Managing Director of Atria
Finland Ltd and the Deputy Managing Director of Atria Group Plc. Juha Ruohola
will continue as the Director of Atria Russia and the Managing Director of OOO
Pit-Product.
Atria Baltic's operations are centralised in Estonia. Food engineer Kari Körkkö
has been appointed as the country manager of Atria Estonia and the Managing
Director of AS Valga Lihatööstus and UAB Vilniaus Mesa from 1 November 2007.
Before starting with Atria, Körkkö worked for ten years as the country manager
of Raisio Group Plc's Polish operations. Körkkö reports to Juha Gröhn.
Personnel
Atria Group's personnel numbered approximately 5,900 during the review period
(5,659).
After the review period, M.Sc. (Econ.) Jarmo Lindholm was appointed Group Vice
President of product development and category management in Atria Group, as
well as a member of the Group's management group, effective from 1 December
2007.
Investments
The Nurmo logistics centre investments have been completed and the centre is in
full use. The value of the logistics centre investments was total EUR 38
million. Atria Finland's investments totalled EUR 5.9 million during the period.
The construction of a new production plant and logistics centre is under way in
the Gorelovo region of St. Petersburg. The new plant will be completed by the
end of 2008. The total value of the investment is approximately EUR 70 million.
In Sweden, Atria will invest approx. EUR one million in convenience food
production in the Fosie factory in Malmö. At the beginning of October, Atria
Scandinavia signed a long-term agreement concerning deliveries of fresh
convenience food to ICA in Sweden. The total investment of Atria Scandinavia
during the review period was approximately EUR 4 million.
Atria Group's gross investments during the third quarter totalled EUR 20.9
million.
Major shareholders
30 September 2007 Amount
A series KII series Total %
------------------------------------------------------
Name
1. Itikka Osuuskunta 2,327,801 4,914,281 25.62
2. Lihakunta 3,221,797 4,020,200 25.62
3. Odin Norden 1,692,600 5.99
4. Skandinaviska 1,541,482 5.45
Enskilda Banken
5. Österbottens Kött 480,038 269,500 2.65
6. Odin Förvaltnings AS 741,714 2.62
7. Nordea Bank 732,717 2.59
Finland Plc
8. OP-Suomi Arvo 493,300 1.75
9. Veritas Pension 281,500 1.00
Insurance Company Ltd.
10. ILMA Mutual Pension 220,700 0.78
Insurance Company
30 September 2007 Votes
A series KII series Total %
------------------------------------------------------
Nimi
1. Itikka Osuuskunta 2,327,801 49,142,810 46.33
2. Lihakunta 3,221,797 40,202,000 39.08
3. Österbottens Kött 480,038 2,695,000 2.86
4. Odin Norden 1,692,600 1.52
5. Skandinaviska 1,541,482 1.39
Enskilda Banken
6. Odin Förvaltnings AS 741,714 0.67
7. Nordea Bank 732,717 0.66
Finland Plc
8. OP-Suomi Arvo 493,300 0.44
9. Veritas Pension 281,500 0.25
Insurance Company Ltd.
10. ILMA Mutual Pension 220,700 0.20
Insurance Company
Notification of changes in shareholding according to the Securities Markets Act
According to a notification on 9 October 2007, the total shareholding of Julius
Baer Investment Management LLC and Julius Baer International Equity Fund are
5.02 per cent of the share capital and 1.28 per cent of the votes.
Atria Group Plc's administration
After the review period, Leena Saarinen M.Sc. (Food Sciences) submitted her
resignation from Atria Group Plc's Board of Directors on 22 October 2007, after
having accepted the post of President and CEO at Tradeka Ltd.
Atria Group Plc's Board of Directors has the following membership: Chairman
Martti Selin; Vice-Chairman Timo Komulainen; members Tuomo Heikkilä, Runar
Lillandt, Matti Tikkakoski and Ilkka Yliluoma.
The Board's valid issue authorisations
The AGM authorised the Board of Directors to decide on increasing the company's
share capital by means of one or more subscription issues, so that the maximum
number of the company's A series shares available for subscription should not
exceed a total of 10,000,000 shares. The nominal value of one A series share is
EUR 1.70.
The AGM authorised the Board of Directors to decide on one or more share
capital increases in which the share capital can be increased by a maximum of
EUR 850,000.
The AGM set the validity period of these authorisations to a maximum of five
years, starting from the authorisation decision.
The share issue authorisation given to the Board of Directors applies to both a
cash share issue and a bonus issue. The share issue may also be a private
offering if there is a strong financial justification for it concerning the
benefit of the company or, in case of a directed bonus issue, a particularly
strong financial justification concerning the benefit of the company and all
its shareholders.
The authorisation for a bonus issue can be mainly used when executing the share
ownership plan of the senior management.
The Board of Directors was given authorisation to decide on all the conditions
of the share issues, including who is entitled to subscription and what the
price will be.
This authorisation will be in effect for five years from the authorisation
decision. A total of 5,175,000 authorised A series shares have been used.
Future prospects
Finland:
Q4/2007 turnover for the period will increase from 2006. The result for the
period will probably be slightly below the comparable operating profit of the
corresponding period last year due to an increase in domestic meat raw
materials. Negotiations to raise sales prices from the beginning of 2008 are
ongoing.
Scandinavia:
Q4/2007 turnover for the period will increase from 2006. The operating profit
for the period will be better than in the corresponding period last year. Meat
prices are also expected to increase and customer negotiations about price
increases are in progress. Non-recurring costs caused by the reorganisation of
the Lätta Måltider unit will be recorded in Q4/2007.
Russia:
During Q4/2007 turnover is expected to grow compared to Q3/2007 because
deliveries to Moscow will increase and sales to areas outside St. Petersburg
and Moscow will begin. In addition, we will increase our marketing efforts in
the St.Petersburg area. Estimated marketing costs during Q3/2007 in terms of
new customers did not materialise in full and were partially transferred to
Q4/2007. We estimate that the profit in the fourth quarter of 2007 in the
Russian market will be positive and better than that of the fourth quarter of
2006.
Baltic region:
In Estonia, Q4/2007 turnover is expected to be at the same level as last year.
Operating profit in Baltic is expected to improve considerably from last year
thanks to shutting down the Lithuanian operations and the reorganisation in
Estonia. During the review period the first reclosable cold cut products will
be launched on the Estonian market.
Corporate Governance
Our Corporate Governance Code, any exceptions to them and the associated
personnel data are published on our website, www.atria.fi./konserni.
Restrictions on trading by insiders
In its meeting on 27 June 2007, the Board has decided that the following
insider trading restrictions will apply:
The period during which the company's insiders may not trade company shares is
14 days before the publication of interim reports and financial statements. The
restriction on trading also applies to parties under the guardianship of
insiders and their controlled corporations as defined in Chapter 1, Section 5
of the Securities Markets Act.
Silent period
Atria Group's IR has adopted a silent period, which means that Atria does not
give any statements about its financial situation three weeks prior to the
publication of interim reports and financial statements.
KEY INDICATORS
mill. EUR 1-9/07 1-9/06 1-12/06
Equity/share, € 16.52 12.47 13.28
Interest-bearing
liabilities 332.5 238.7 244.2
Interest-bearing assets 50.9 43.8 44.6
Equity ratio, % 47.1 44.0 42.8
Gross investments 262.9 53.1 89.0
Gross investments
of turnover, % 28.1 6.6 8.1
Average personnel 5 900 5 659 5 740
Principles applied in preparing the interim report
This interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard. The firm has applied the same principles in
preparing this interim report as in preparing the 2006 annual financial
statements. This interim report is unaudited.
ATRIA GROUP PLC
CONSOLIDATED BALANCE SHEET
Assets
mill. EUR 30-9-07 30-9-06 31-12-06
Non-current assets
Property, plant
and equipment 443.4 353.9 362.8
Goodwill 149.4 53.2 57.7
Other intangible assets 69.5 22.4 33.3
Loan assets and
other receivables 7.1 6.4 6.9
Investments 7.3 6.6 6.3
Total 676.7 442.5 467.0
Current assets
Inventories 92.8 61.8 63.4
Trade and
other receivables 182.8 157.4 165.8
Cash in hand and at bank 42.5 14.0 35.4
Total 318.1 233.2 264.6
Total assets 994.8 675.7 731.6
Equity and liabilities
mill. EUR 30-9-07 30-9-06 31-12-06
Equity
Shareholders´equity 467.0 276.7 306.6
Minority interest 1.9 20.4 5.8
Equity, total 468.9 297.1 312.4
Long-term liabilities
Interest-bearing
liabilities 272.8 166.2 165.4
Deferred tax liabilities 45.0 23.0 26.9
Pension obligations 0.3 0.3 0.3
Total 318.1 189.5 192.6
Short-term liabilities
Interest-bearing
liabilities 59.7 72.5 78.8
Trade and other payables 148.1 116.6 147.8
Total 207.8 189.1 226.6
Liabilities, total 525.9 378.6 419.2
Total equity and
liabilities 994.8 675.7 731.6
CONSOLIDATED PROFIT AND LOSS ACCOUNT
mill. EUR 7-9/07 7-9/06 1-9/07 1-9/06 1-12/06
Turnover 312.8 281.7 935.1 805.0 1 103.3
Expenses -281.6 -260.2 -820.1 -755.2 -1 024.0
Depreciations -11.9 -8.8 -33.7 -26.1 -37.8
Operating profit 19.3 12.7 81.3 23.7 41.5
* % of turnover 6.2 4.5 8.7 2.9 3.8
Income from associates 0.8 0.4
Financial income and
expenses -3.2 -2.1 -12.0 -4.9 -7.3
Profit before tax 16.1 10.6 69.3 19.6 34.6
* % of turnover 5.1 3.8 7.4 2.4 3.1
Income taxes -4.3 -2.9 -9.7 -6.3 -8.6
Profit for the period 11.8 7.7 59.6 13.3 26.0
* % of turnover 3.8 2.7 6.4 1.7 2.4
Profit distribution for
the accounting period:
To parent company
shareholders 11.6 7.2 58.7 12.7 25.1
To minority shares 0.2 0.5 0.9 0.6 0.9
Total 11.8 7.7 59.6 13.3 26.0
Basic earnings/share, € 0.41 0.33 2.32 0.58 1.15
Diluted
earnings/share, € 0.41 0.33 2.32 0.58 1.15
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR
Equity belonging to the owners of the parent company Mino Share-
rity holders'
Share Share Other Trans- Retained Total share equity
Capital premium reserve lation earnings in total
diff.
Shareholders'
equity 1-1-2006 35.8 104.4 -0.9 115.5 254.8 20.2 275.0
Translation differences 0.9 0.9 -0.4 0.5
Profit for the period 12.7 12.7 0.6 13.3
Distribution
of dividends -12.6 -12.6 -12.6
Share issue 1.9 19.0 20.9 20.9
Shareholders'
equity 30-9-2006 37.7 123.4 0.0 115.6 276.7 20.4 297.1
Shareholders'
equity 1-1-2007 39.3 138.5 0.7 128.1 306.6 5.8 312.4
Translation differences -1.3 -1.3 -0.1 -1,4
Other changes 0.2 0.2 -4.7 -4.5
Profit for the period 58.7 58.7 0.9 59.6
Distribution
of dividends -13.7 -13.7 -13.7
Share issue 8.8 110.2 -2.5 116.5 116.5
Shareholders'
equity 30-9-2007 48.1 138.5 110.4 -0.6 170.6 467.0 1.9 468.9
CASH FLOW STATEMENT FOR GROUP
mill. EUR 1-9/07 1-9/06 1-12/06
Cash flow from operating activities
Operating activities 61.7 20.0 62.2
Financial items
and taxes -26.4 -8.9 -14.5
Cash flow from operating activities,
total 35.3 11.1 47.7
Cash flow from investing activities
Tangible and
intangible assets -61.9 -53.2 -63.5
Investments -0.9 -1.2 -2.1
Sold shares in subsidiaries 33.0 10.7
Bought shares in subsidiaries -123.6 -16.1
Cash flow from investing activities,
total -153.4 -54.4 -71.0
Cash flow from financing activities
Cash share issue 116.5 20.9 20.9
Loans drawn down 254.2 94.2 99.7
Loans repaid -232.1 -62.6 -66.0
Dividends paid -13.7 -12.6 -13.0
Cash flow from financing,
total 124.9 39.9 41.6
Change in liquid funds 6.8 -3.4 18.3
SEGMENT-SPECIFIC INFORMATION
GEOGRAPHICAL
mill. EUR 7-9/07 7-9/06 1-9/07 1-9/06 1-12/06
Turnover
Finland 187.4 173.4 545.7 506.2 686.1
Scandinavia 108.6 87.8 341.8 240.4 336.4
Russia 15.6 20.4 48.7 54.1 74.1
Others 6.4 7.8 20.6 22.8 30.5
Eliminations -5.2 -7.7 -21.7 -18.5 -23.8
Total 312.8 281.7 935.1 805.0 1 103.3
Operating profit
Finland 12.2 11.4 31.1 22.7 34.0
Scandinavia 6.7 3.4 49.4 5.7 15.1
Russia 1.1 -0.7 3.8 -2.3 -2.7
Others -0.7 -1.4 -3.0 -2.4 -4.9
Total 19.3 12.7 81.3 23.7 41.5
Comparable operating profit
Finland 12.2 11.4 31.1 22.7 32.2
Scandinavia 6.7 3.4 14.6 5.7 7.4
Russia 1.1 -0.7 3.8 -2.3 -2.7
Others -0.1 -1.4 -1.8 -2.4 -3.4
Total 19.9 12.7 47.7 23.7 33.5
LIABILITIES
mill. EUR 30-9-07 30-9-06 31-12-06
Debts with mortgages or other collateral
given as security
Loans from financial
institutions 61.5 81.1 90.4
Pension fund loans 4.8 6.7 7.0
Total 66.3 87.8 97.4
Mortgages and other securities given
as comprehensive security
Real estate mortgages 77.7 77.8 83.6
Corporate mortgages 27.5 43.9 44.2
Other securities 40.1 46.2 52.6
Total 145.3 167.9 180.4
Guarantee engagements not included
in the balance sheet
Unused limits 86.9 102.6 104.7
Guarantees 3.6 19.8 27.8
ACQUIRED OPERATIONS
On 1 April 2007 the Group acquired the Swedish company AB Sardus. The
acquisition forms part of Atria's goal of becoming the leading food industry
company in the Baltic Sea region. The food industry is currently undergoing a
structural change and integration development, and there are a limited number
of major operators. Merging Atria and Sardus strengthens the ability of both
companies to respond to the new challenges set by the integrating markets.
Together, the companies will complement each other and form a stronger operator
with a wide selection of strong brands. The merger is expected to produce
synergy benefits for product development, purchases, logistics, production and
marketing. The wider product range and the synergy benefits will form the main
accelerators of growth, and they strengthen the brands and product groups of
both companies.
Sardus' turnover in 2006 amounted to EUR 229.5 million and its operating profit
was EUR 8.9 million.
Acquiree's
Fair current
value book value
Assets
Property, plant and equipment 54.3 54.3
Goodwill 92.2 43.1
Other intangible assets 53.8 3.5
Financial assets 0.9 0.9
Inventories 25.9 25.9
Receivables 31.2 31.2
Cash and cash equivalents 4.0 4.0
Assets, total 262.3 162.9
Liabilities
Deferred tax liabilities 22.4 9.6
Interest-bearing liabilities 81.3 81.3
Other liabilities 31.0 31.0
Liabilities, total 134.7 121.9
Net assets 127.6 41.0
Purchase price 127.6
Cash and cash equivalents of acquired company 4.0
Effect on cash flow 123.6
Calculation has been made as a draft.
ATRIA GROUP PLC
Board of Directors
For further information, please contact Mr Matti Tikkakoski, President and CEO,
tel. +358 50 2582.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi
The interim report will be mailed to you upon request and is also available on
our website at www.atria.fi/konserni.
