ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
METSÄLIITTO GROUP RELEASE
26 April 2005 at 1.00 p.m.
ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Metsäliitto Groups comparative IFRS figures
Metsäliitto Group changed its financial reporting standards from
Finnish Accounting Standards (FAS) to International Financial
Reporting Standards (IFRS) at the start of 2005.
Metsäliitto Group has prepared an opening IFRS balance sheet for
its IFRS transition date of 1 January 2004. In preparing this
opening balance sheet the company has availed itself of some
exemptions available to first-time adopters of IFRS, which are
explained in more detail in the appendix to this release. IFRS
reporting principles will be addressed in full in the 2005 annual
report.
Summary
2004 2004 2004 2004
Key figures 1-12 1-12 1-9 1-9
FAS IFRS FAS IFRS
Operating profit 66 144 54 140
Result for the period -21 -24 -9 -2
Members funds 1 586 1 351 1 585 1 376
Interest bearing net 3 133 3 336 3 349 3 503
liabilities
Balance total 8 451 8 651 8 551 8 701
Return on capital employed, % 1.2 2.5 1.4 3.3
Return on equity, % -4.5 -3.9 -3.8 -2.8
Equity ratio, % 37.3 32.1 34.9 30.1
Gearing ratio, % 100 120 115 136
2004 2004 2004 2004
Key figures 1-6 1-6 1-3 1-3
FAS IFRS FAS IFRS
Operating profit 55 105 50 70
Result for the period 12 14 18 8
Members funds 1 596 1 371 1 595 1 350
Interest bearing net 3 561 3 713 3 538 3 694
liabilities
Balance total 8 591 8 678 8 728 8 802
Return on capital employed, % 1.8 3.7 3.0 4.6
Return on equity, % -1.7 -1.5 0.1 -2.2
Equity ratio, % 34.5 29.6 34.0 28.8
Gearing ratio, % 121 145 120 146
2004 2004 2004 2004
Balance sheet 1.1 1.1 31.12 31.12
FAS IFRS FAS IFRS
Members funds (./. capital 1 555 1 309 1 586 1 351
note loans)
Minority interests 1 408 1 239 1 559 1 428
Interest bearing net 3 468 3 618 3 133 3 336
liabilities
Balance total 8 508 8 547 8 451 8 651
Equity ratio, % 35.0 29.8 37.3 32.1
Gearing ratio, % 117 142 100 120
Income
Metsäliitto Groups consolidated operating profit for 2004 was EUR
78 million higher under IFRS than FAS. Operating profit was
improved in comparison to FAS by such items as the discontinuation
of goodwill amortisation and the reporting of fixed asset
impairment losses recognised during 2004 on the opening IFRS
balance sheet.
A loss of EUR 135 million before minority interest, minority
interest of EUR 114 million, and a net loss of EUR 21 million were
reported for 2004 under FAS. Under IFRS the years operating loss
before minority interest totalled EUR 104 million, minority
interest EUR 80 million, and the net loss for the period EUR 24
million.
Balance sheet
The adoption of IFRS had a EUR 246 million negative impact on the
Groups equity on the 1 January 2004 opening balance sheet and EUR
235 million on the 31 December 2004 closing balance sheet. The most
significant changes related to pension liabilities, asset
impairments and a partial reclassification of members capital
contributions as financial liabilities.
Changes in members equity and minority interests had a roughly 5
percentage point effect on the companys equity ratio, and a
roughly 20 percentage point effect on its gearing ratio.
The appended tables and notes further describe the effects of IFRS
on the Groups 2004 consolidated net profit and its opening and
year-end 2004 balance sheets.
ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Comparative IFRS figures with notes; year 2004 by quarter and
1 January 2004 opening IFRS balance sheet (both unaudited)
General
Metsäliitto Group changed its financial reporting standards from
Finnish Accounting Standards (FAS) to International Financial
Reporting Standards (IFRS) at the start of 2005.
Metsäliitto Groups opening IFRS balance sheet is dated for its
IFRS transition date of 1 January 2004. The first IFRS-based
interim report will be released for the first quarter of 2005.
This information release summarises the related key changes in
accounting principles and the effects of the adoption of IFRS on
Metsäliitto Groups consolidated financial statements and opening
IFRS balance sheet. IFRS reporting principles will be addressed in
full in the 2005 annual report.
Metsäliitto Group has applied a number of exceptions permitted under
the IFRS 1 first-time adoption standard in preparing its opening
IFRS balance sheet in respect of the following:
- tangible and intangible assets; valuation
- business combinations
- pension liabilities
- financial instruments
- cumulative translation differences
The transition from FAS to IFRS reporting will have an effect on the
accounting treatment of such items as
- equity
- pension arrangements
- derivatives contracts
- asset write-ups
- deferred taxes
- finance leases and other similar agreements
- provisions
- business combinations
Application of the IFRS 1 (First-time Adoption of International
Financial Reporting Standards) transitional standard
1. Presentation of comparative information
Metsäliitto Group will prepare and release its first IFRS-based
annual financial statements for the 1 January 31 December 2005
reporting period. Comparative information will be presented for
one year (2004) by way of an IFRS-based income statement, balance
sheet, cash flow statement, statement of changes in equity, and
notes to the financial statements.
2. Tangible assets
The opening IFRS balance sheet of Metsäliitto Group reports fixed
assets at cost less accumulated depreciation and impairments, plus
revaluations (write-ups) under previously applied accounting
standards to the extent permitted under IFRS 1. Forest assets
constitute an exception to this rule, and have been reported at
fair value in accordance with IAS 41 (Biological Assets).
3. Intangible assets
Metsäliitto Groups intangible assets are reported on its opening
IFRS balance sheet at cost less accumulated amortisation and
impairments.
4. Business combinations
Metsäliitto Group has applied an exemption permitted under IFRS 1
with regard to business combinations in preparing its opening IFRS
balance sheet. The assets and liabilities of subsidiaries have not
been restated at fair value but have instead been included on the
opening balance sheet at their book values under previously applied
accounting standards, less any asset and goodwill impairment losses
recognised on the balance sheet date.
5. Pension liabilities
Metsäliitto Group has availed itself of IFRS 1, and has included
any accrued actuarial gains and losses relating to its defined
benefit pension plans on the opening IFRS balance sheet. Subsequent
actuarial gains and losses will be subject to the 10 per cent
corridor approach under IAS 19.
6. Financial instruments/derivatives contracts
Metsäliitto Group has applied the provisions of IFRS 1, and has
classified financial instruments on its opening IFRS balance sheet
in the manner required under IAS 32 (Financial Instruments:
Disclosure and Presentation) and IAS 39 (Financial Instruments:
Recognition and Measurement). Any gains and losses arising from the
marking to market of derivatives positions established to hedge
financial assets and liabilities and currency and interest rate
exposures have thus been reported under members funds on the
opening IFRS balance sheet.
7. Cumulative translation differences
Metsäliitto Group applies the transitional provisions of IFRS 1 and
assumes that no cumulative translation differences exist on the
transition date. This means that any foreign exchange gains or
losses arising on the translation of the financial statements of
foreign operating units into euro are included in retained
earnings.
Changes in accounting principles and related effects
1. Members capital (IAS 32 and IFRIC 2)
Under FAS, the members capital and the additional members capital
of Metsäliitto Cooperative, the parent company of Metsäliitto
Group, are treated as equity. IFRS, meanwhile, treats any financial
instruments (here members capital) that are redeemable upon demand
as financial liabilities.
The new bylaws of Metsäliitto Cooperative specify an annual maximum
amount for the return of members capital. The amount of members
capital and additional members capital that can be returned will
be the equivalent of one-third of the distributable equity
reflected on the latest balance sheet adopted by an annual general
meeting.
The opening IFRS balance sheet of Metsäliitto Cooperative
reclassifies EUR 114 million and the 31 December 2004 balance sheet
EUR 124 million of members capital as interest-bearing
liabilities.
2. Employee benefits (IAS 19)
Under FAS, pension costs have been recognised on the consolidated
financial statements in accordance with the local regulations
applicable to each consolidated entity. IFRS treats pension
arrangements as either defined contribution or defined benefit
plans. In the latter case the pension plans assets and liabilities
are valued actuarially, and their net difference is recognised as
either an asset or liability on the balance sheet.
Finnish statutory employee pension arrangements (TEL) have been
treated as defined contribution plans under FAS. The original IFRS
interpretation has treated related disability coverage as a defined
contribution plan. In December 2004 the Finnish authorities
approved a number of changes regarding the determination of
disability coverage contributions that will take effect on 1
January 2006. These changes will result in the treatment of
disability coverage arrangements as defined contribution plans.
Metsäliitto Groups opening IFRS balance sheet includes TEL
disability coverage liabilities for the years 2004 and 2005 in the
amount of EUR 8 million (EUR 6 million after tax), and the 31
December 2004 balance sheet EUR 6 million for 2005 (EUR 5 million
after tax).
A total of EUR 51 million of the pension liabilities of foreign
consolidated entities have been recognised in the equity section of
the opening balance sheet. Various changes in the course of 2004
reduced 31 December 2004 members funds by EUR 37 million pre-tax.
3. Business combinations (IFRS 3)
IFRS 3 requires that any goodwill stemming from business
acquisitions be recorded at cost less accumulated impairment
losses. Goodwill is no longer amortised after the adoption of IFRS
but is instead tested for impairment on an annual basis. Since
Metsäliitto Group has availed itself of the IFRS transitional rules
and has not restated the effects of business acquisitions, goodwill
has been recognised on the opening IFRS balance sheet at cost less
accumulated amortisation up to the date of transition and any
impairment losses recognised on the transition date.
Total goodwill stood at EUR 695 million on the opening IFRS balance
sheet, and at EUR 704 million on the 31 December 2004 balance
sheet. FAS-based goodwill amortisation totalled EUR 45 million in
2004. Goodwill has been allocated to specific business segments.
Finnforest Corporation, a subsidiary of Metsäliitto, sold 7 power
plants at the end of 2004 to a power company called Biokraft Oy,
which is jointly owned by Vapo Oy (81%) and Finnforest Corporation
(19%). A 10-year supply agreement was signed with respect to the
heat requirements of Finnforest production facilities.
Biokraft Oy has been reported on the December 2004 IFRS balance
sheet as a special purpose entity (SPE). Vapo Oys ownership has
been presented as an interest-bearing liability on the balance
sheet of Finnforest, which has been eliminated in consolidation
against the ownership interest of Vapo at the Metsäliitto Group
level. Under FAS, the gain on the disposal of the power plants was
recognised as income. These gains on sale were reversed under
related IFRS treatment. Their combined effect on the 2004 reported
IFRS income totalled EUR 16.7 million after tax and minority
interest.
4. Impairment of assets (IAS 36)
Metsäliitto Group has tested its cash-generating assets for
possible impairment on the transition date by discounting related
expected cash flows. This testing has prompted the recognition of
EUR 49 million in asset impairment losses, net of minority
interest, on the opening balance sheet. These mainly relate to
goodwill attributed to various businesses of Metsäliitto Group,
such as the Consumer Packaging (fixed assets of Savon Sellu),
Commercial Printing (fixed assets of Zanders Reflex plant) and
wholesaling business. The effect of impairment losses on members
funds totalled EUR 47 million after tax and minority interest.
The fixed assets of the above plants have been written down in
their entirety, with the exception of land. This is due to the
current operating losses of these units as well as their poor
prospects. The impairment of goodwill allocated to the wholesaling
business related to the poor financial performance of certain
operating units within the business.
The testing of the cash-generating assets included on the 2004
closing balance sheet has not given rise to the recognition of any
impairment losses.
The definition of cash-generating units employed in the impairment
testing of assets is based on the business segmentation used as a
basis for segment reporting.
5. Property, plant and equipment / Capitalisation of borrowing
costs (IAS 16, IAS 23)
Metsäliitto Group reports tangible fixed assets on its balance
sheet at cost less accumulated scheduled depreciation and
impairment losses. After the IFRS transition date the company also
capitalises borrowing costs that are immediately attributable to
the purchase, construction or manufacture of fixed asset as part of
the cost of such assets. Such capitalisation only applies to long-
term projects. Construction period interest has previously been
mainly expensed during the reporting period incurred. A total of
EUR 0.5 million of interest expenses related to the construction of
M-reals Kaskinen BCTMP plant were capitalised during 2004. This
change in capitalisation policy has no effect on the opening IFRS
balance.
6. Valuation of forest assets (IAS 41, Biological Assets)
Metsäliitto Groups forest assets have been valued at cost plus
asset write-ups recognised over the years in accordance with FAS.
Under IAS, 41 forest assets have been classified as biological
assets on the opening IFRS balance sheet and reported at fair
value. Prior asset write-ups have simultaneously been reversed.
The value of Metsäliitto Groups forest assets, including land,
totalled EUR 171 million on 31 December 2003 under FAS. An outside
expert appraisal placed the fair market value of these assets at
roughly the same figure.
Metsäliitto Groups consolidated financial statements also include
a 53 per cent share of Metsä-Botnias Finnish and Uruguayan forest
assets. Metsäliittos share was assigned a fair market value of EUR
28 million on the opening balance sheet. This amount includes a EUR
6 million fair market value write-up.
The value of Thomestos forest assets grew by EUR 4 million on the
opening IFRS balance sheet to a total fair value of EUR 7 million.
7. Leases (IAS 17)
Metsäliitto Group is a party to certain agreements relating to
power generation and other facilities and manufacturing equipment
leases that under FAS have been treated as off-balance sheet rental
or supply contracts but under IFRS will be included on the balance
sheet as either financing leases or special purpose entities
(SPEs). The negative effect of these arrangements on the opening
IFRS equity totalled EUR 2 million after tax and minority interest.
The Tako cartonboard facility of the Metsäliitto subsidiary M-real
in Tampere, Finland, is subject to a sale-leaseback agreement. As
this agreement includes a binding repurchase obligation at the end
of the lease period at the original selling price, the lease is
treated as a financing arrangement. This agreement and the
previously recorded related gain on sale have been reversed on the
opening IFRS balance sheet.
8. Income taxes (IAS 12)
FAS permitted a number of alternative approaches to the recognition
of deferred tax liabilities and assets. Under the approach selected
by Metsäliitto Group, deferred taxes have not been recognised in
relation to all temporary book and tax accounting differences. IFRS
requires the recognition of deferred taxes for all temporary book
and tax accounting differences. The most notable distinction
between the approach applied by Metsäliitto Group and IFRS is an
increase in deferred tax liabilities in respect of the carrying
value of forest assets in excess of their tax basis (cost). The
related reduction in members funds recognised on the opening
balance sheet totals EUR 15 million net of minority interest. Other
divergences between Finnish and IFRS reporting practices for
temporary differences have given rise to a EUR 7 million deferred
tax liability. A deferred tax asset of EUR 20 million has, in turn,
been recorded on the opening IFRS balance sheet for the reductions
of members funds described in this information release.
9. Provisions (IAS 37)
Provisions for future expenses and losses have been permitted
earlier in some cases under FAS than will be allowed under IFRS.
Such cases include reorganisation or restructuring expense
provisions, for example. The M-real subsidiary of Metsäliitto Group
has reversed EUR 21 million of provisions on its opening IFRS
balance sheet that do not meet IFRS recognition criteria. Of this
total, EUR 16 million relates to the sale and wind-up of its Price
& Pierce trading business. This sale was consummated in 2004, and
the IFRS income statement consequently reflects a corresponding
negative difference in relation to the income reported under FAS.
10. Financial instruments (IAS 32, IAS 39)
Metsäliitto Groups 1 January 2004 opening IFRS balance sheet
classifies and values all financial assets and liabilities and
derivatives contracts used to hedge currency and interest rate
exposures in the manner required under IAS 32 and IAS 39. The
companys FAS statements also report currency derivatives at their
market value but recognise related hedging income or losses over
the remaining hedging period. The Group has decided to discontinue
the application of hedge accounting (time-based recognition of
hedge performance over the hedging period) to cash flow hedges upon
the adoption of IFRS. Metsäliitto Group will continue to enter into
derivatives contracts to hedge its cash flows, but will now
recognise any income or losses relating to the marking to market of
such contracts directly on the income statement. IFRS-based hedge
accounting will be applied to all equity hedges and select interest
rate hedges on financial liabilities.
Open interest rate derivatives positions are not marked to market
under FAS and are thus not reflected on the balance sheet.
The marking to market of financial instruments resulted in a
negative net effect of EUR 11 million after tax on members equity
on the opening IFRS balance sheet.
Under FAS, where hedge accounting has been applied to currency
derivatives, hedging income and losses have been recognised as
adjustments to sales, cost of goods sold or financing expenses
depending on the item hedged. As the Group has discontinued the
application of hedge accounting, any foreign exchange gains and
losses have been recognised as financing items on the IFRS income
statement.
11. Sales
Reported 2004 sales were EUR 44 million higher under IFRS than FAS.
This is mainly due to the full inclusion of Kemiart Liners in the
consolidated IFRS statements as of 1 January 2004 and the changed
treatment of currency translation differences.
12. Interest-bearing net liabilities
Some pension liabilities of foreign subsidiaries have been
transferred from interest-bearing liabilities to pension
liabilities, which are non-interest bearing, on the opening IFRS
balance sheet. Under FAS, these liabilities were treated as
interest-bearing liabilities. The transferred amount totalled EUR
130 million on 1 January 2004 and EUR 124 million on 31 December
2004.
13. Costs of share issue
Under FAS, costs of share issue have been expensed during the
accounting period incurred. Under IFRS, they are recorded directly
under members funds as a reduction of retained earnings. After-tax
expenses relating to the 2004 share issue by the Metsäliitto Group
subsidiary M-real totalled EUR 12 million (EUR 17 million pre-tax),
which has been recorded as an adjustment against the companys IFRS
earnings for the year.
14. Cash flow statement
Metsäliitto Group has not prepared a comparative cash flow
statement for inclusion in this release as the adoption of IFRS
will have no material effect on the reporting of cash flows.
Reconciliation of members funds 2004 2004
31.12. 1.1.
Members funds according to FAS
(capital note loans not included) 1 586 1 555
Effects of adopting IFRS
Pension obligations -43 -59
Financial leases, sale & -19 -18
leaseback
Impairment losses -27 -49
Reversal of goodwill 26 0
amortizations
Tax impact of previous revaluations -1 -1
Biological assets 5 6
Provisions 1 8
Financial instruments -22 -16
Transfer from members capital to
liabilities -124 -114
Biokraft Oy -17
Deferred taxes on IFRS adjustments 5 -2
Other -19 -3
Total -235 -246
Minority interest 1 428 1 239
Members funds according to IFRS 2 779 2 548
Reconciliation of profit for the 2004 2004 2004 2004
period 1-12 1-9 1-6 1-3
Profit according to FAS -21 -9 12 18
Effects of adopting IFRS
Pension obligations 7 5 4 1
Financial leases, sale & leaseback 0 0 0 0
Impairment losses 22 22 1 0
Reversal of goodwill amortizations 26 25 13 6
Biological assets -2 -3 0 0
Provisions -8 -3 0 0
Financial instruments -19 -11 -4 -20
Revaluation of debts -1 0 0 0
Deferred taxes on IFRS adjustments -3 -2 0 5
Biokraft -23
Other -4 -25 -12 -4
Total -3 7 2 10
Profit according to IFRS -24 -2 14 8
METSÄLIITTO GROUP
2004 2004 2004 2004
Income statement 1-12 Effects 1-12 1-9 Effects 1-9
FAS of IFRS FAS of IFRS
IFRS IFRS
Sales 8 554 44 8 598 6 424 38 6 462
Other operating income 149 -14 135 97 17 114
Operating expenses -8 032 -34 -8 066 -5 999 -36 -6 034
Share of results in
associates -5 5 0 -1 1 0
Depreciation and
impairment losses -600 78 -522 -468 67 -401
Operating profit 66 78 144 54 87 140
Share of results in
associates 0 1 1 0 5 5
Net exchange gains/ losses 13 -15 -2 5 -26 -21
Other financial income &
expenses -213 -6 -219 -141 -14 -155
Result before tax
and minority interest -134 58 -76 -83 52 -31
Income taxes -1 -27 -28 -1 -22 -23
Minority interest 114 -34 80 74 -22 52
Result for the period -21 -3 -24 -9 8 -2
2004 2004 2004 2004
Income statement 1-6 Effect 1-6 1-3 Effect 1-3
FAS s IFRS FAS s IFRS
of of
IFRS IFRS
Sales 4 344 20 4 364 2 155 5 2 160
Other operating income 70 14 84 40 13 53
Operating expenses -4 075 -2 -4 077 -2 007 -5 -2 012
Share of results in
associates 1 -1 0 2 -2 0
Depreciation and
impairment losses -285 20 -265 -141 10 -131
Operating profit 55 50 105 50 20 70
Share of results in
associates 0 5 5 0 4 4
Net exchange gains/ losses 6 -27 -21 6 -21 -15
Other financial income &
expenses -96 -4 -100 -51 -27 -78
Result before tax
and minority interest -35 25 -10 5 -24 -19
Income taxes 10 -19 -9 -5 10 5
Minority interest 37 -4 33 18 4 22
Result for the period 12 2 14 18 -10 8
2004 2004 2003 2004
Balance sheet 31.12. Effects 31.12. 31.12. Effects 1.1.
FAS of IFRS IFRS FAS of IFRS IFRS
ASSETS
Non-current assets
Intangible assets 796 6 802 865 -68 797
Tangible assets 4 199 -51 4 148 4 352 -116 4 236
Biological assets 0 201 201 0 202 202
Financial assets
Interest bearing 64 -5 59 72 1 73
Deferred tax receivables 62 40 102 29 23 52
Other non-interest
bearing 277 6 283 291 -4 287
5 398 198 5 596 5 609 38 5 647
Current assets
Inventories 1 172 0 1 172 1 155 -10 1 145
Receivables
Interest bearing 18 48 66 11 -3 8
Non-interest bearing 1 561 3 1 564 1 518 9 1 527
Cash and cash
equivalents 302 -50 252 215 4 219
3 053 2 3 055 2 899 1 2 900
TOTAL 8 451 201 8 651 8 508 40 8 547
MEMBERS FUNDS AND
LIABILITIES
Members funds 1 585 -234 1 351 1 555 -246 1 309
Minority interest 1 559 -131 1 428 1 408 -169 1 239
Total members funds 3 144 -365 2 779 2 963 -415 2 548
Non-current liabilities
Deferred tax liabilities 438 67 505 472 9 481
Retirement benefit
obligations 47 224 271 31 263 294
Provisions 45 0 45 54 -14 40
Interest bearing 2 878 68 2 946 3 242 30 3 272
Other non-interest
bearing 34 3 37 31 29 60
3 442 363 3 805 3 831 316 4 147
Current liabilities
Interest bearing 638 130 768 524 122 646
Non-interest bearing 1 225 74 1 299 1 189 17 1 206
1 863 204 2 067 1 713 139 1 852
Total liabilities 5 305 567 5 872 5 544 455 5 999
TOTAL 8 451 201 8 651 8 508 40 8 547
2004 2004 2004 2004 2004 2004
BALANCE SHEET 30.9. 30.9. 30.6. 30.6. 31.3. 31.3.
FAS IFRS FAS IFRS FAS IFRS
ASSETS
Non-current assets
Intangible assets 808 798 830 798 847 797
Tangible assets 4 211 4 148 4 281 4 175 4 314 4 210
Biological assets 0 196 0 205 0 203
Financial assets
Interest bearing 69 67 64 62 79 82
Deferred tax receivables 50 84 52 82 57 91
Other non-interest
bearing 286 293 290 293 290 292
5 424 5 586 5 517 5 615 5 587 5 675
Current assets
Inventories 1 165 1 160 1 167 1 162 1 232 1 225
Receivables
Interest bearing 14 11 37 34 35 29
Non-interest bearing 1 688 1 692 1 678 1 682 1 670 1 667
Cash and cash
equivalents 259 252 192 184 203 207
3 127 3 115 3 074 3 062 3 141 3 128
TOTAL 8 551 8 701 8 591 8 678 8 728 8 802
MEMBERS FUNDS AND
LIABILITIES
Members funds 1 585 1 376 1 596 1 371 1 595 1 350
Minority interest 1 330 1 195 1 358 1 194 1 358 1 181
Total members funds 2 915 2 571 2 954 2 565 2 953 2 531
Non-current liabilities
Deferred tax 435 496 445 498 467 489
liabilities
Retirement benefit 53 295 34 295 30 297
obligations
Provisions 37 32 46 32 49 34
Interest bearing 2 879 2 908 3 148 3 169 3 150 3 184
Other non-interest
bearing 36 34 38 37 46 93
3 441 3 764 3 712 4 033 3 742 4 097
Current liabilities
Interest bearing 812 925 707 824 705 828
Non-interest bearing 1 382 1 441 1 218 1 256 1 328 1 345
2 195 2 366 1 925 2 080 2 033 2 173
Total liabilities 5 636 6 130 5 637 6 113 5 775 6 271
TOTAL 8 551 8 701 8 591 8 678 8 728 8 802
SEGMENTS
Consumer packaging
1- 10- 7-9/04 4-6/04 1-3/04
12/04 12/04
Sales 1 045 256 264 267 258
EBITDA 180 45 49 42 44
- % of turnover 17.2 17.7 18.4 15.9 17.0
Depreciation &
impairment losses -87 -16 -24 -24 -23
Operating profit 93 30 25 18 20
- % of turnover 8.9 11.6 9.4 6.9 7.9
EBITDA = result before depreciation and impairment losses
Papers
1- 10- 7-9/04 4-6/04 1-3/04
12/04 12/04
Sales 2 944 759 738 710 737
EBITDA 229 34 71 55 69
- % of turnover 7.8 4.5 9.6 7.7 9.4
Depreciation &
impairment losses -256 -64 -65 -64 -64
Operating profit -27 -30 6 -9 6
- % of turnover -0.9 -4.0 0.8 -1.3 0.8
MAP Merchant Group
1- 10- 7-9/04 4-6/04 1-3/04
12/04 12/04
Sales 1 368 343 332 339 354
EBITDA 24 5 5 7 7
- % of turnover 1.8 1.5 1.4 2.1 2.0
Depreciation &
impairment losses -7 -2 -2 -2 -2
Operating profit 17 4 3 5 5
- % of turnover 1.2 1.0 0.8 1.6 1.5
Wood products
1- 10- 7-9/04 4-6/04 1-3/04
12/04 12/04
Sales 1 923 466 458 529 470
EBITDA 94 15 24 32 24
- % of turnover 4.9 3.2 5.2 6.0 5.1
Depreciation &
impairment losses -71 -18 -18 -18 -17
Operating profit 23 -3 6 14 7
- % of turnover 1.2 -0.6 1.3 2.6 1.5
Others
1- 10- 7-9/04 4-6/04 1-3/04
12/04 12/04
Sales 1) 1 459 346 341 395 377
Operating profit 38 4 -5 7 32
of which
Wood procurement in
Finland 25 6 8 2 9
International wood
procurement 3 -1 2 1 1
Hygiene products 38 10 10 5 13
Others and Group
eliminations -28 -12 -25 -2 10
1) Sales to companies outside the Group
Quarterly data 2004 2004 2004 2004 2004
1-12 10-12 7-9 4-6 1-3
Sales by segment
Consumer packaging 1 045 256 264 267 258
Papers 2 944 759 738 710 737
MAP Merchant Group 1 368 343 332 339 354
Wood products 1 923 466 458 529 470
Others 1 459 346 341 395 377
- internal sales -142 -35 -35 -37 -35
Group sales 8 598 2 135 2 099 2 204 2 160
Operating profit by segment
Consumer packaging 93 30 25 18 20
Papers -27 -30 6 -9 6
MAP Merchant Group 17 4 3 5 5
Wood products 23 -3 6 14 7
Others 38 4 -5 7 32
Group operating profit 144 4 35 35 70
- % of sales 1.7 0.2 1.7 1.6 3.2
Share of results in 1 -4 0 1 4
associates
Net exchange gains / losses -2 19 0 -6 -15
Other financial income & -219 -64 -55 -22 -78
expenses
Result before tax -76 -45 -21 9 -19
Income taxes -28 -5 -14 -14 5
Minority interest 80 28 19 12 22
Result for the period -24 -22 -16 6 8
2004 2004 2004 2004
Key figures 1-12 1-12 1-9 1-9
FAS IFRS FAS IFRS
Operating profit 66 144 54 140
Result for the period -21 -24 -9 -2
Members funds 1 585 1 351 1 585 1 376
Interest bearing net 3 133 3 336 3 349 3 503
liabilities
Balance total 8 451 8 651 8 551 8 701
Return on capital employed, % 1.2 2.5 1.4 3.3
Return on equity, % -4.5 -3.9 -3.8 -2.8
Equity ratio, % 37.3 32.1 34.9 30.1
Gearing ratio, % 100 120 115 136
2004 2004 2004 2004
Key figures 1-6 1-6 1-3 1-3
FAS IFRS FAS IFRS
Operating profit 55 105 50 70
Result for the period 12 14 18 8
Members funds 1 596 1 371 1 595 1 350
Interest bearing net 3 561 3 713 3 538 3 694
liabilities
Balance total 8 591 8 678 8 728 8 802
Return on capital employed, % 1.8 3.7 3.0 4.6
Return on equity, % -1.7 -1.5 0.1 -2.2
Equity ratio, % 34.5 29.6 34.0 28.8
Gearing ratio, % 121 145 120 146
2004 2004 2004 2004
Balance sheet 1.1. 1.1. 31.12. 31.12.
FAS IFRS FAS IFRS
Members funds (./. capital 1 555 1 309 1 586 1 351
note loans)
Minority interest 1 408 1 239 1 559 1 428
Interest bearing net
liabilities 3 468 3 618 3 133 3 336
Balance total 8 508 8 547 8 451 8 651
Equity ratio, % 35.0 29.8 37.3 32.1
Gearing ratio, % 117 142 100 120
Calculation of key ratios
Return on capital employed, %:
(Operating profit + financial income) ./.
(Balance total non-interest bearing liabilities (average))
Return on equity, %:
(Profit before taxes taxes) ./.
(Members funds + minority interest (average))
Equity ratio, %:
(Members funds + minority interest) ./.
(Balance total advance payments received)
Gearing ratio, %:
(Interest bearing net liabilities) ./.
(Members funds + minority interest)
Interest bearing net liabilities =
Interest bearing liabilities interest bearing assets
For more information contact
Harri Turunen, Senior VP, tel. + 358 10469 4250
