METSÄLIITTO GROUP INTERIM REPORT JANUARY - JUNE 2005
METSÄLIITTO GROUP RELEASE
29 July 2005 at 1.00 p.m.
INTERIM REPORT JANUARY JUNE 2005
President and CEO Kari Jordan:
The unprecedentedly long labour market dispute in the forest
industry caused the Metsäliitto Group to make a loss for the first
half of 2005. Although some notable results were achieved when
agreement was reached, the dispute reduced the Groups financial
result for the first six months of the year by almost EUR 100
million.
Numerous efficiency and harmonization projects have been introduced
within M-real and the other subsidiaries as well as at Group level
that will improve consolidated financial results in the future.
Without the labour dispute the first signs of the effects of
efficiency measures taken by the Metsäliitto Group would now be
visible.
However, even without the effects of the labour dispute, the profit-
making performance cannot be considered satisfactory. Every area of
the Metsäliitto Groups activities must be improved and made more
efficient. To achieve this demands discipline, hard work,
rationalization of operations and the careful setting of priorities
in everything we do.
KEY FIGURES
UNAUDITED FIGURES
2005 2005 2004 2004 2004 2004
1-6 1-3 1-12 1-9 1-6 1-3
Sales 4 321 2 187 8 598 6 462 4 364 2 160
Operating profit 18 74 144 140 105 70
Result before tax -131 18 -76 -31 -10 -19
Result for the period -42 14 -24 -2 14 8
Return on capital
employed, % 0.8 4.9 2.5 3.3 3.7 4.6
Return on equity, % -8.7 1.5 -3.9 -2.8 -1.5 -2.2
Equity ratio, % 31.4 32.1 32.1 30.1 29.6 28.8
Gearing, % 131 123 120 136 145 146
Interest-bearing net
liabilities 3 453 3 440 3 336 3 503 3 713 3 694
Personnel at the end of
period 30767 29050 28783 29397 30791 29410
INTERIM REPORT JANUARY JUNE 2005
Sales and financial results
Sales for the period January June were EUR 4,321 million, compared
with EUR 4,364 million for the same period last year. First-half
operating profit was EUR 18 million (105). The overriding factor
affecting the financial result was the six-week industrial dispute at
Finlands paper, board and pulp mills. The overall impact of the
dispute on the financial result was almost EUR 100 million. Profits
were also hit by lower average sales prices for fine paper, the
higher cost of energy and oil, and the running down of product
stocks.
Operating profit was also reduced by a non-recurring cost provision
of EUR 15 million arising from the programme to improve the
efficiency of M-reals operations in Sweden.
Net finance costs were 3.4 per cent of sales (2.6). Finance income was
EUR 8 million (12), the Groups share of the results of associated
companies was EUR -2 million (5) and finance costs, including losses
on the valuation of interest-rate derivatives, were EUR 132 million
(111). Exchange rate differences on financing were EUR -23 million
(-21).
During May June the dollar strengthened against the euro from 1.30
to 1.20. This, combined with changes in other exchange rates and the
lower interest rate, considerably increased finance costs due to the
valuation losses arising from compliance with IFRS. Metsäliitto hedges
its future cash flow against changes in exchange and interest rates,
but not according to the IAS 39 hedging calculation procedure. This
means the derivatives used to hedge cash flow and interest rate risks
must be booked at current value, while the hedged transaction remains
at its original value. These valuation losses, which affect the income
statement but not the cash flow, were approximately EUR 40 million net
for the review period.
The result before tax was EUR -131 million (-10). Taxes, including the
change in deferred tax liability, were EUR 13 million (9) and minority
interest was EUR 76 million (33). The result for the period was
EUR -42 million (14).
Return on capital employed for the first half of the year was 0.8 per
cent (3.7) and return on equity -8.7 per cent (-1.5).
Balance sheet and financing
At the end of June the Groups equity ratio was 31.4 per cent and the
gearing ratio 131 per cent (32.1% and 120%, respectively at 31
December 2004). Interest-bearing net liabilities increased by EUR 117
million during the review period to stand at EUR 3,453 million at the
end of June (3,336 million at 31 December 2004).
The Groups total liquidity at the end of June was EUR 1.9 billion
(2.1 billion at 31 December 2004). Of this amount, EUR 0.2 billion was
in the form of liquid funds and investments (0.3) and EUR 1.7 billion
in the form of committed credit facilities not shown in the balance
sheet (1.8). For its short-term financing needs the Group also had
around EUR 0.7 billion available in non-committed domestic and foreign
commercial paper programmes and forward credits.
At its meeting on 13 April 2005, Metsäliitto Cooperatives
Representative Council decided that interest of 6.5 per cent would be
paid on members capital for 2004 (6.5%), interest of 5.5 per cent on
additional members capital A (5.5%) and 4.0 per cent on additional
members capital B.
At the same meeting, the Representative Council decided to amend the
by-laws to allow one-third of the distributable surplus for the
financial period, as shown in the most recently adopted balance
sheet, to be used annually to repay members capital and additional
members capital.
Overall, members capitals increased by EUR 24 million during the
first half of the year. Members capital increased by EUR 9 million,
additional members capital A by EUR 11 million, and additional
members capital B by EUR 4 million. At the end of June Metsäliitto
had a total of 130,771 members (130,869 at 31 December 2004).
Capital expenditure and acquisitions
Gross capital expenditure on fixed assets and company acquisitions
during the period January June was EUR 330 million (132).
In January, Metsäliitto Cooperative bought 16.6 per cent of the
shares of Vapo from the Finnish state for EUR 47 million. The Vapo
group is consolidated into Metsäliittos accounts from the beginning
of the year in accordance with the Metsäliittos 49.9 per cent
holding.
At the end of January, Metsäliitto acquired a 49.9 per cent interest
in Finsilva, the company that has purchased the forest assets owned
jointly by M-real and Metsäliitto, together with those owned by Suomi
Mutual Life Assurance Company.
In a significant internal transaction at the end of March,
Metsäliitto Cooperative purchased 8 per cent of the shares of Metsä-
Botnia from M-real for EUR 164 million. Also in March, Metsäliitto
increased Finnforests share capital by EUR 50 million.
Construction of Botnias sawmill in Russia is progressing as planned.
The sawmill, which will have an annual capacity of 200,000 cubic
metres, will start production early in 2006.
In June, Thomesto acquired the entire share capital of OOO Progress, a
Russian wood procurement company operating in Leningrad province.
Thomesto previously owned 40 per cent of the company. The acquisition
will strengthen Thomestos wood procurement operations in Russia and
at the same time secure supplies of wood raw material for the sawmill
being built by Botnia.
Finnforest is expanding production at its Kerto unit at Punkaharju.
When complete in the first half of 2006, the units annual production
capacity will rise by 60,000 cubic metres to 130,000 cubic metres.
The investment will cost an estimated EUR 20 million.
At the beginning of March, M-real announced it was investing EUR 60
million in modernizing its board machine at Simpele. The investment
will raise the mills capacity by 45,000 tonnes to 215,000 tonnes a
year. The work will be completed in stages by spring 2006.
The investment at Kaskinens BCTMP mill is going ahead as planned.
The main equipment has been installed and the mill will start up in
August.
It was decided to call off the discussions held during the spring
aimed at selling off M-reals carton plants. Priority will now be
given to making the carton plants more competitive in every respect
as a part of M-real.
Uruguay pulp mill project
The decision to build a one million t/a eucalyptus pulp mill in
Uruguay was taken in March 2005. The mill is expected to be completed
in the third quarter of 2007 at a total cost of around USD 1.1
billion.
In May, Botnia and Andritz Oy signed a letter of intent under which
Andritz will supply the main process equipment for the pulp mill. The
order, which is worth more than EUR 200 million, comprises the fibre
line from wood handling to the drying machine, together with the
recovery system.
At present, 55 persons are engaged in the project. The pulp mill
itself will employ around 300 workers, but in total the operation
will provide jobs for over 8,000 people.
Personnel
The average number of employees during the period January June was
29,340 (29,820). The number at the end of June was 30,767 (30,791).
At the end of 2004, the Group had 28,783 employees.
The rise in the number of employees during the first six months of
the year is due to company acquisitions and seasonal workers. The
acquisition of OOO Progress in June brought an additional 683
employees. At the end of June, Vapo had 1,724 employees.
Metsäliitto Group companies
Metsäliitto Cooperative and Thomesto
Metsäliitto Cooperatives sales for January June were EUR 522
million (604). The drop in sales is due to the fall of 1.9 million
cubic metres in delivery volumes compared with this period last year.
Operating profit was EUR 13 million (11), 2.4 per cent of sales
(1.8). Operating profit includes capital gains of EUR 2.4 million
from the sale of shares.
Profit after financial items was EUR 34 million (74). Finance items
include a write-down of EUR 6 million on the Forestia transaction and
dividend income of EUR 28 million (63). Dividend for the first half
of last year includes corporation tax credit of EUR 18 million.
Metsäliitto Cooperatives return on capital employed was 4.9 per cent
(8.4). At the end of June the equity ratio was 58.0 per cent and the
gearing ratio 19 per cent (59.8% and -8%, respectively, at 31
December 2004). Interest-bearing liabilities were EUR 198 million
(-82 million at 31 December 2004).
Thomesto, which handles wood procurement outside Finland, booked
sales of EUR 232 million (197) and an operating profit of EUR 1.5
million (1.5). Wood deliveries to Finland were roughly 1.8 million
cubic metres (1.8).
Finnforest
Finnforests sales were EUR 1,021 million (999). There was a profit
on operations of EUR 14 million (21) and the result before taxes was
EUR -9 million (+1). The industrial dispute had a negative impact on
the result of around EUR 4 million. Market valuations of foreign
currency and interest rate derivatives reduced the first-half result
by some EUR 7 million.
Worst hit by the dispute was the companys sawmilling business, where
production in June reached only half of the target. Results continued
to be affected by poor profitability in both the redwood and
whitewood businesses. Demand for birch and conifer plywoods and Kerto
LVL remained good and sales prices moved positively. Plywood
production continued despite the dispute in the paper industry.
Return on capital employed was down on this period last year at 2.9
per cent (4.3). At the end of June the equity ratio was 29.1 per cent
and the gearing ratio 158 per cent (27.0% and 179%, respectively, at
31 December 2004).
Finnforest published its own interim report on 29 July 2005.
Metsä Tissue
Metsä Tissue booked first-half sales of EUR 340 million (337). Sales
volumes were up on last year, notably in Western Europe, but the
value of sales was unchanged as a result of the labour dispute in
Finland. Operating profit fell to EUR 9 million from last years
figure of EUR 18 million. The main reason was the labour dispute,
which caused a marked decrease in product stocks.
M-real
M-real recorded sales of EUR 2,603 million (2,775) and an operating
profit of EUR 43 million (33). The main non-recurring items included
in operating profit were a gain of EUR 81 million from the sale of 8
per cent of Botnia and a provision of EUR 15 million for the cost of
the revitalization programme for M-reals Swedish operations. Non-
recurring items totalled a net of EUR 70 million.
Profitability was affected by the fall in paper and board deliveries,
the decrease in product stocks, and the decline in Botnias operating
profit, all of which are attributable to the labour dispute in
Finland. The dispute weakened M-reals result by an estimated total
of EUR 70 million. The stronger euro, the fall in uncoated fine paper
prices, the higher cost of petroleum-based raw materials and higher
energy costs also adversely affected profitability.
Finance income and costs were EUR -109 million (-82). The figure
includes net interest and other finance costs of EUR 80 million (61),
trade receivables and payables, foreign currency hedges, and exchange
differences on finance items totalling EUR -26 million (-21), and
shares of results of associates of EUR -3 million (0). Other finance
costs include a loss of EUR 17 million on the valuation of interest
rate derivatives and impairment losses of EUR 4 million.
The result before tax was EUR -66 million (-49), earnings per share
were EUR -0.14 (0.58) and return on capital employed 2.2 per cent
(1.8). Excluding non-recurring items, the corresponding figures were
EUR -132 million, EUR -0.35 and -0.7 per cent.
At the end of June the equity ratio was 38.4 per cent and the gearing
ratio 85 per cent (37.5% and 89%, respectively, at 31 December 2004).
M-real published its own interim report on 29 July 2005.
Botnia
First-half sales were EUR 404 million (535) and the result of
operations was EUR -4 million (71). The result contains a non-
recurring write-down on goodwill of EUR 5 million relating to the
Baltic Pulp business. The other main reasons for the decline in
operating profit were Finlands labour dispute and the lower price of
softwood pulp.
Business in the second quarter was dominated by lock-outs and local
strikes. The sales volume for the second quarter was 45 per cent down
on the first quarter.
Demand for softwood pulp was good but slackened in the spring and
prices began to fall. The price of softwood pulp fell from USD
645/tonne in March to USD 600 in June. The price of hardwood pulp
remained at USD 600 throughout the second quarter.
The result before tax was EUR -2 million (72) and the return on
capital employed 0.2 per cent (11.6). The equity ratio was 69.8 per
cent and the gearing ratio 3 per cent.
Botnias figures are consolidated 39 per cent into M-reals
accounts and 14 per cent into the Metsäliitto Groups accounts.
Adoption of International Financial Reporting Standards (IFRS)
The Metsäliitto Group adopted International Financial Reporting
Standards (IFRS) from the beginning of 2005. The effects of the
transition on the profit and loss account and balance sheet were
explained in detail in a press release published on 26 April 2005.
This is available on Metsäliittos website at www.metsaliitto.com.
Outlook
The labour market dispute caused the Metsäliitto Group to make a loss
for the first half of the year. Worst hit were the Groups paper,
board and pulp mills, but sawmilling and wood procurement were also
indirectly affected.
The financial result for the third quarter, before tax, is expected
to be better than that for the second after elimination of the
effects of the labour dispute and the EUR 15 million cost provision.
However, third-quarter results will be affected by the time taken to
bring the Finnish mills back up to full production after the restart
in July. Before tax, the Metsäliitto Group expects to make a loss for
the current year.
Espoo, 29 July 2005
BOARD OF DIRECTORS
For more information contact:
Ilkka Pitkänen, Chief Financial Officer. Tel. +358 1046 94260
BUSINESS SECTOR REVIEWS
Consumer Packaging
I- I-
II/05 II/04 II/05 II/04 I-IV/04
Sales 437 525 199 267 1 045
EBITDA 56 89 6 45 187
- % of sales 12.9 17.0 2.9 16.6 17.8
Depreciation and
impairment losses -46 -49 -23 -25 -90
Operating profit 10 41 -17 20 97
- % of sales 2.4 7.7 -8.5 7.4 9.2
EBITDA = result before depreciation and impairment losses
The consumer packaging business produced first-half sales of EUR 437
million (525) and an operating profit of EUR 10 million (41). The
weaker result is due to the effects of Finlands labour dispute, but
also to the stronger euro and the higher cost of petroleum-based raw
materials and energy.
Folding boxboard deliveries by Western European suppliers were 2 per
cent down on the first half of last year. The average price was about
the same as last year.
The operating profit for the second quarter was EUR -17 million
(first quarter EUR 27 million). Profitability suffered from the fall
in deliveries resulting from the labour dispute, the running down of
product stocks and the decline in Botnias operating profit.
Papers
I- I-
II/05 II/04 II/05 II/04 I-IV/04
Sales 1 479 1 447 732 710 2 944
EBITDA 87 128 13 57 237
- % of sales 5.9 8.8 1.8 8.0 8.0
Depreciation and
impairment losses -128 -129 -64 -65 -260
Operating profit -41 -1 -51 -8 -23
- % of sales -2.8 -0.1 -6.9 -1.1 -0.8
EBITDA = result before depreciation and impairment losses
The papers business consists of M-reals Publishing, Commercial
Printing and Office Papers business areas.
The papers business booked first-half sales of EUR 1 479 million
(1 447) and a result on operations of EUR -41 million (-1). The
result contains a non-recurring provision of EUR 15 million relating
to the revitalization of operations in Sweden, together with non-
recurring income of EUR 4 million.
Deliveries by coated magazine paper suppliers in Western Europe
showed growth of 6 per cent on the first half of last year. The
average sales price was 1 per cent higher despite the stronger euro.
Deliveries by coated fine paper suppliers were 1 per cent down and by
uncoated fine paper suppliers 1 per cent up on this period last year.
Average sales prices were 1 per cent lower for coated grades and 3
per cent for uncoated grades.
MAP Merchant Group
I-II/05 I-II/04 II/05 II/04 I-IV/04
Sales 692 693 351 339 1 368
EBITDA 17 17 9 8 24
- % of sales 2.5 2.4 2.6 2.5 1.8
Depreciation and
impairment losses -4 -4 -2 -2 -7
Operating profit 13 13 7 6 17
- % of sales 1.9 1.9 2.0 1.9 1.2
EBITDA = result before depreciation and impairment losses
First-half sales by the MAP Merchant Group were EUR 692 million
(693). Operating profit was EUR 13 million (13). The second-quarter
result benefited from the growth in deliveries and lower costs. The
result contains no non-recurring items.
Wood products
I-II/05 I-II/04 II/05 II/04 I-IV/04
Sales 1 021 999 553 529 1 923
EBITDA 50 56 33 32 94
- % of sales 4.9 5.6 6.0 6.1 4.9
Depreciation and
impairment losses -36 -35 -18 -18 -71
Operating profit 14 21 15 14 23
- % of sales 1.4 2.1 2.7 2.6 1.2
EBITDA = result before depreciation and impairment losses
The Finnforest Group is the Metsäliitto Groups wood products
division.
The wood products business produced sales of EUR 1,021 million (999)
and an operating profit of EUR 14 million (21). Operations were
adversely affected by the labour dispute in June, which caused
additional costs and loss of earnings. Low market prices for sawn
timber, particularly redwood, and the high price of raw material,
also affected results.
Demand and prices for panel products and birch and conifer plywood
were better than in the first half of last year. Marketing and sales
for the production of building modules, which is just starting, were
strengthened in Finland.
Others
I-II/05 I-II/04 II/05 II/04 I-IV/04
Sales 1) 764 772 336 395 1 459
Operating profit 21 32 -11 3 30
of which
Wood procurement
in Finland 13 11 -1 2 25
International wood
procurement 1 1 0 1 3
Hygiene products 9 18 0 5 38
Others and Group
eliminations -2 2 -10 -5 -36
1) Sales to companies outside the Group
Other operations mainly comprises Metsäliitto Cooperative, Thomesto
and Metsä Tissue. Figures also include Metsäliittos 49.9 per cent
share of the Vapo group as from January 2005.
Trading in wood raw material was brisk early in the year but returned
to normal during the spring. Wood purchases in June were well below
budget, but the volume purchased so far this year is as planned.
During the first six months of the year Metsäliitto purchased roughly
8.5 million cubic metres of wood (8.0), almost half of the target for
the year.
High consumption of pulpwood meant that delivery contracts
represented a slightly higher proportion of purchases than normal.
Prices for pine logs have been falling, but deals for other species
have been struck at prices similar to those of last autumn.
Deliveries to mills in Finland, including wood chips, totalled around
11.3 million cubic metres, 7.5 million cubic metres of which was
roundwood. Deliveries during May and June were well down because of
the labour market dispute affecting the pulp and paper industry. Wood
harvesting also had to be suspended almost entirely.
In response to the fall in wood consumption caused by the labour
market dispute, Metsäliitto has reduced its purchasing target by an
amount corresponding to several weeks production. Nevertheless,
there is good demand for all wood species and especially for stands
marked for summer harvesting.
The dispute in the Finnish paper industry also caused the hygiene
products business to return a smaller operating profit than last
year. The dispute stopped production at the Mänttä mill for more than
six weeks during May and June. Sales volumes showed growth in all the
main markets, particularly in Western Europe. Operations in Poland
progressed as planned, and the mill produced a better result than
last year.
Metsä Tissue is continuing its efforts to improve cost effectiveness
in response to continuing intense price competition and market
conditions and to the higher prices of oil and energy.
The Vapo group will publish its own interim report on 10 August 2005.
Production
1 000 units I-II/05 I-II/04 II/05 II/04 I-IV/04
Paper, t 1 901 1 957 875 969 4 008
Paperboard, t 421 650 128 319 1 330
Sawn goods, m3 2 163 2 182 1 110 1 059 4 185
Processed timber,m3 614 508 315 211 1 166
EW-products, m3 482 489 256 236 911
Pulp & CTMP, t
(M-real) 733 750 350 369 1 533
Pulp, t (Botnia) 929 1 232 276 594 2 450
METSÄLIITTO GROUP
2005 2004 Change 2004
Income statement 1-6 1-6 1-12
Sales 4 321 4 364 -43 8 598
Other operating income 78 83 -5 135
Operating expenses -4 121 -4 077 -44 -8 066
Depreciation and impairment
losses -260 -265 5 -522
Operating profit 18 105 -87 144
Share of results in associates -2 5 -7 1
Net exchange gains / losses -23 -21 -2 -2
Other financial income and
expenses -124 -99 -25 -219
Result before tax
and minority interest -131 -10 -121 -76
Income taxes 13 -9 22 -28
Result after tax -118 -19 -99 -104
Minority interest 76 33 43 80
Result for the period -42 14 56 -24
2005 2004 Change 2004
Balance sheet 30.6. 30.6 31.12
ASSETS
Non-current assets
Intangible assets 810 798 12 802
Tangible assets 4 210 4 175 35 4 148
Biological assets 55 205 -150 201
Financial assets
Interest bearing 71 62 9 59
Deferred tax receivables 109 82 27 102
Other non-interest bearing 194 293 -99 283
5 449 5 615 -166 5 596
Current assets
Inventories 1 134 1 162 -28 1 172
Receivables
Interest bearing 7 34 -27 66
Non-interest bearing 1 617 1 682 -65 1 564
Cash and cash equivalents 196 184 12 252
2 954 3 062 -108 3 055
TOTAL 8 403 8 678 -275 8 651
MEMBERS FUNDS AND LIABILITIES
Members funds 1 304 1 371 -67 1 351
Minority interest 1 326 1 194 132 1 428
Total members funds 2 630 2 565 65 2 779
Non-current liabilities
Deferred tax liabilities 474 499 -25 505
Post employment benefit
obligations 270 295 -25 271
Provisions 63 33 30 45
Interest bearing 2 878 3 169 -291 2 946
Other non-interest bearing 141 37 104 37
3 826 4 033 -207 3 805
Current liabilities
Interest bearing 850 824 26 768
Non-interest bearing 1 097 1 256 -159 1 299
1 947 2 080 -133 2 067
Total liabilities 5 772 6 113 -341 5 872
TOTAL 8 403 8 678 -275 8 651
Change in
members funds Members Retained Minority Total
capital Reserves earnings interest
Members funds 31.12.2003 545 63 947 1 408 2 963
Effect of transition to
IFRS -114 -9 -123 -169 -415
Members funds 1.1.2004,
IFRS 431 54 824 1 239 2 548
Translation differences 15 15
Dividends paid -29 -29
Transfers 3 -3 0
Increase in members 58 58
capital
Increase in reserves 2 2
Effects of financial 1 1
instruments
Minority interest -46 -46
Result for the period 14 14
Members funds 30.6.2004 489 60 821 1 193 2 563
Members funds 1.1.2005 505 62 783 1 428 2 778
Translation differences 1 1
Dividends paid -34 -34
Transfers 9 -8 1
Increase in members 25 25
capital
Increase in reserves 1 1
Effects of financial 2 2
instruments
Minority interest -102 -102
Result for the period -42 -42
Members funds 30.6.2005 530 74 700 1 326 2 630
2005 2004 2004
Cash flow statement 1-6 1-6 1-12
Cash flow from operations
Result for the period -42 14 -24
Adjustments total 334 350 672
Change in working capital -77 -118 35
Cash generated from operations 215 246 683
Finance costs, net -108 -115 -225
Income taxes paid -34 -51 -85
Net cash from operations 73 80 373
Cash flow from investments
Acquisitions -46
Purchases of assets -284 -132 -434
Sold assets and others 191 396 568
Net cash from investments -139 264 134
Cash flow from financing
Change in non-current loans
and other financial items 68 -317 -413
Dividends paid -58 -62 -62
Net cash flow from financing 10 -379 -475
Change in cash and cash
equivalents -56 -35 33
Cash at beginning of period 252 219 219
Change in cash and cash
equivalents -56 -35 33
Cash at end of period 196 184 252
METSÄLIITTO GROUP
Quarterly data 2005 2005 2004 2004 2004 2004 2004
II I IV III II I I-IV
Sales by segment
Consumer packaging 199 238 256 264 267 258 1 045
Papers 732 747 759 738 710 737 2 944
MAP Merchant Group 351 341 343 332 339 354 1 368
Wood products 553 468 466 458 529 470 1 923
Others 336 428 346 341 395 377 1 459
- internal sales -37 -35 -35 -35 -37 -35 -142
Group sales 2 134 2 187 2 135 2 099 2 204 2 160 8 598
Operating profit by
segment
Consumer packaging -17 27 30 26 20 21 97
Papers -51 10 -30 7 -8 6 -23
MAP Merchant Group 7 6 0 4 7 7 17
Wood products 15 -1 -3 6 14 7 23
Others -11 32 7 -8 3 29 30
Group operating profit -56 74 4 35 36 70 144
- % of sales 2.6 3.4 0.2 1.7 1.6 3.2 1.7
Share of results in
associates -2 0 -4 0 1 4 1
Net exchange gains/losses -12 -11 19 0 -6 -15 -2
Other financial income
& expenses -79 -45 -64 -55 -22 -78 -219
Result before tax -149 18 -45 -21 9 -19 -76
Income taxes 20 -7 -5 -14 -14 5 -28
Result after tax -129 11 -50 -35 -5 -14 -104
Minority interest 73 3 28 19 12 22 80
Result for the period -56 14 -22 -16 6 8 -24
METSÄLIITTO GROUP
Reconciliation of profit
Effects of
Income statement FAS transition IFRS
1-6/2004 to IFRS 1-6/2004
Sales 4 344 20 4 364
Other operating income 70 13 83
Operating expenses -4 075 -2 -4 077
Share of results in associates 1 -1 0
Depreciation and impairment
losses -285 20 -265
Operating profit 55 50 105
Share of results in associates 0 5 5
Net exchange gains / losses 6 -27 -21
Other financial income and
expenses -96 -3 -99
Result before tax
and minority interest -35 25 -10
Income taxes 10 -19 -9
Result after tax -25 6 -19
Minority interest 37 -4 33
Result for the period 12 2 14
Reconciliation of balance sheet
Effects of
Balance sheet FAS transition IFRS
30.6.2004 to IFRS 30.6.2004
ASSETS
Non-current assets
Intangible assets 830 -32 798
Tangible assets 4 281 -106 4 175
Biological assets 0 205 205
Financial assets
Interest bearing 64 -2 62
Deferred tax receivables 52 30 82
Other non-interest bearing 290 3 293
5 517 98 5 615
Current assets
Inventories 1 167 -5 1 162
Receivables
Interest bearing 37 -3 34
Non-interest bearing 1 678 4 1 682
Cash and cash equivalents 192 -8 184
3 074 -12 3 062
TOTAL 8 591 87 8 678
MEMBERS FUNDS AND LIABILITIES
Members funds 1 596 -225 1 371
Minority interest 1 358 -164 1 194
Total members funds 2 954 -389 2 565
Non-current liabilities
Deferred tax liabilities 445 54 499
Post employment benefit
obligations 34 261 295
Provisions 46 -13 33
Interest bearing 3 148 21 3 169
Other non-interest bearing 38 -1 37
3 712 321 4 033
Current liabilities
Interest bearing 707 117 824
Non-interest bearing 1 218 38 1 256
1 925 155 2 080
Total liabilities 5 637 476 6 113
TOTAL 8 591 87 8 678
