Fair value of M-real's PVO shares defined
M-real Corporation Stock Exchange Release June 25, 2008
M-real will fair value according to IAS 39 its ownership in Pohjolan
Voima (PVO) to EUR 439 million. The PVO shares have previously been
measured at cost of EUR 34 million. The fair valuation has a EUR 300
million impact on the fair value reserve of equity and EUR 105
million on deferred tax liabilities. Corresponding corrections have
been made to comparison periods according to IAS 8. The table below
illustrates the main key figures after the fair valuation.
M-real announced on May 27, 2008 the sale of 100 000 B2 shares in
Pohjolan Voima to Kymppivoima for EUR 80 million resulting in a gain
of EUR 74 million. This transaction has become effective on June 25,
2008 and M-real has received the cash. After the fair valuation of
the PVO investment and sale transaction, the total realized gain is
EUR 74 million.
KEY FIGURES 2008 2007 2007 2007 2007 2007 2006
Q1 Q4 Q3 Q2 Q1
Return on equity, % -3,8 -47,7 -2,1 -10,2 9,0 -12,5 -15,4
Return on capital employed, % 2,7 -23,3 4,2 -1,1 9,2 -2,5 -4,5
Equity ratio at end of period,
% 35,0 34,4 34,5 34,5 34,6 34,4 32,8
Gearing ratio at end of
period, % 120 124 117 119 117 124 132
Net gearing ratio at end of
period, % 100 99 107 107 104 99 113
Covenant equity ratio at end
of period, % 40,6 39,7 39,1 39,3 39,2 39,7 37,6
Covenant gearing ratio at end
of period, % 87 86 94 94 92 86 101
Shareholders equity per share,
eur 5,59 5,58 6,09 6,11 6,23 5,58 6,26
M-REAL CORPORATION
Further information:
Seppo Parvi, CFO, tel. +358 10 465 4321