METSÄLIITTO GROUP INTERIM REPORT JANUARY - SEPTEMBER 2005
METSÄLIITTO GROUP RELEASE
28 October 2005 at 1.00 p.m.
METSÄLIITTO GROUP
INTERIM REPORT JANUARY - SEPTEMBER 2005
President and CEO Kari Jordan:
"The Metsäliitto Group continues to work towards greater profitability and
competitiveness. In August we decided to combine our domestic and foreign wood
procurement activities, while in September we approved the merger of Finnforest
with Metsäliitto Cooperative. This restructuring is designed to achieve savings
by making our activities simpler and more efficient.
"The labour dispute, following which production resumed in July, had a negative
impact on financial results, but despite this the three months to September
showed a small profit. Compared with the previous quarter the result improved by
more than EUR 160 million, although this was largely because the result for the
second quarter was reduced by non-recurring items.
"The forest industry's business environment remains challenging, and prices for
many key products are at record low levels. We must constantly strive to achieve
greater efficiency and competitiveness. We cannot wait for the business cycle to
help put our profitability on the right track."
KEY FIGURES
Unaudited figures
2005 2005 2005 2004 2004 2004 2004
1-9 1-6 1-3 1-12 1-9 1-6 1-3
Sales, MEUR 6378 4321 2187 8598 6462 4364 2160
Operating profit, MEUR 63 18 74 144 140 105 70
Result before tax, MEUR -118 -131 18 -76 -31 -10 -19
Result for the period,
MEUR -37 -42 14 -24 -2 14 8
Return on capital employed,
% 1.7 0.8 4.9 2.5 3.3 3.7 4.6
Return on equity, % -5.4 -8.7 1.5 -3.9 -2.8 -1.5 -2.2
Equity ratio, % 30.8 31.4 32.1 32.1 30.1 29.6 28.8
Gearing, % 131 131 123 120 136 145 146
Interest-bearing net
liabilities, MEUR 3476 3453 3440 3336 3503 3713 3694
Personnel at the end
of period 29520 30767 29050 28783 29209 30791 29410
INTERIM REPORT JANUARY - SEPTEMBER 2005
Sales and financial results
Sales for the period January to September were EUR 6,378 million, compared with
EUR 6,462 for the same period last year. Operating profit for the period was EUR
63 million (140). Operating profit was hit particularly by the labour dispute
that affected paper, board and pulp mills in Finland during the second quarter
and early part of the third quarter. The estimated overall impact of the dispute
was close on EUR 120 million. Operating profit also suffered from the lower than
average sales prices for fine paper, from higher energy costs and from the non-
recurring cost provision of EUR 15 million booked during the previous quarter.
Net finance costs were 2.8 per cent of sales (2.7). Finance income was EUR 18
million (17), the Group's share of the results of associated companies was EUR 0
million (5) and finance costs were EUR 176 million (172). Exchange rate
differences on financing were EUR -23 million (-21). Finance costs include a
loss of EUR 6 million on the valuation of interest rate hedging instruments.
Valuation losses for the period January - June were EUR 20 million.
Valuation gains and losses relate mainly to changes in the exchange rate for the
US dollar and in interest rates and have no impact on the cash flow. From the
start of the third quarter the Group company M-real has partially adopted the
IFRS hedging calculation procedure in hedging its exposure to changes in the
value of the dollar. Use of the new calculation procedure improved the third-
quarter financial result by EUR 1 million compared with the previous calculation
procedure.
The result before tax was EUR -118 million (-31). Taxes, including the change in
deferred tax liability, were EUR 8 million (-23) and minority interest accounted
for EUR 73 million of the loss (52). The result for the review period was EUR -37
million (-2).
Return on capital employed for the period January - September was 1.7 per cent
(3.3) and return on equity -5.4 per cent (-2.8).
Balance sheet and financing
At the end of September the Group had an equity ratio of 30.8 per cent and a
gearing ratio of 131 per cent (32.1% and 120%, respectively, at 31 December
2004). Interest-bearing net liabilities increased by EUR 140 million during the
first nine months and at the end of September were EUR 3,476 million (3,336
million at 31 December 2004).
The Group's total liquidity at the end of September 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 in non-committed
domestic and foreign commercial paper programmes and forward credits.
Members' capitals increased by EUR 32 million during the nine months to
September. Members' capital grew by EUR 10 million, additional members' capital A
by EUR 16 million and additional members' capital B by EUR 6 million. At the end
of September, Metsäliitto had 130,874 members (130,869 at the end of 2004).
Capital expenditure and acquisitions
Gross capital expenditure on fixed assets and company acquisitions during the
period January - September totalled EUR 485 million (230).
In January, Metsäliitto Cooperative bought 16.6 per cent of the shares of Vapo
from the Finnish state for EUR 47 million, bringing Metsäliitto's stake in the
company up to 49.9 per cent.
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.
At the end of March, Metsäliitto Cooperative purchased 8 per cent of the shares
of Botnia from M-real for EUR 164 million. Metsäliitto's direct ownership of
Botnia is now 14 per cent.
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. In September, Thomesto sold its 40% stake in
the Baltic sawmills SIA Vika Wood and AS Toftan.
Work on the construction of Botnia's sawmill in Russia is going to schedule. The
mill will have an annual capacity of 200,000 cubic metres and is due to start up
early in 2006. The cost of the investment is around EUR 50 million.
Finnforest is expanding production at its Kerto unit at Punkaharju. When complete
in the first half of 2006, the unit's annual production capacity will increase by
60,000 cubic metres to 130,000 cubic metres. The estimated cost of the investment
is EUR 20 million.
The EUR 60 million modernization of Simpele's board machine is progressing as
planned. The work will raise the mill's annual capacity by 45,000 tonnes to
215,000 tonnes. The work will be completed in stages by spring 2006.
The BCTMP mill built at Kaskinen started production in August and deliveries
began in September. The mill's entire output of 300,000 tonnes will provide raw
material for Metsäliitto's own mills.
Uruguay pulp mill project
The decision to build a one million t/a eucalyptus pulp mill in Uruguay was taken
in March this year. The mill is expected to be completed in the third quarter of
2007 at a total cost of around USD 1.1 billion.
In September, Botnia and Jaakko Pöyry Group signed an agreement under which Pöyry
will assist with implementation of the pulp mill project and supply the
engineering services. In the same month Kemira and Botnia signed an agreement for
the supply of chemicals. Kemira will invest some EUR 60 million in chemicals
plants to be built alongside the mill.
Uruguay and Argentina are in dispute over the siting of the mill on the banks of
the Rio Uruguay river, which marks the border between the two countries. The two
countries have set up a commission of experts to look into the matter. The
dispute has not affected the progress of the project.
Organization
As part of the Group's efficiency and harmonization programme, in August the
board of directors of Metsäliitto Cooperative approved a plan to combine domestic
and foreign wood procurement operations. The aim is to make financial control of
wood procurement more efficient. The reorganization will simplify operations,
allow resources to be allocated more effectively, and bring cost savings. The new
organization will be effective from early November.
A plan to merge Finnforest Corporation with Metsäliitto Cooperative was approved
at the end of September. The aims are to make the Group more efficient and to cut
costs. The merger is expected to be completed in March 2006. At the same time the
Group company Metsäliitto-Yhtymän Tehdasmittaus Oy will be merged with
Metsäliitto Cooperative.
Following the mergers, the parent cooperative's annual sales are expected to
increase to around EUR 1.5 billion. The number of employees will be roughly 3,400
and the equity ratio approximately 50 per cent.
Personnel
During the period January - September the Group had an average of 29,619
employees (29,804). The number at the end of September was 29,520 (29,209). At
the end of 2004, the Group had 28,783 employees.
The rise in the number of employees during the review period is due largely to
company acquisitions. OOO Progress, the wood procurement company acquired in
June, had almost 500 employees in September. Vapo's total workforce at the end of
September was 1,644, of whom 49.9 per cent will join Metsäliitto.
METSÄLIITTO GROUP COMPANIES
Metsäliitto Cooperative and Thomesto
Metsäliitto Cooperative's sales for January - September were EUR 796 million
(867). The drop in sales is due to the fact that, because of the industrial
dispute, deliveries of wood raw material were 1.9 million cubic metres down on
this period last year. Operating profit was EUR 14 million, 1.7 per cent of sales
(19 million and 2.2%). Operating profit includes capital gains of EUR 2.4 million
from the sale of shares.
Profit after finance items was EUR 32 million (85). Finance items include a write-
down of EUR 6 million on the Forestia transaction and dividend income of EUR 28
million (63). Dividend for this period last year includes corporation tax credit
of EUR 18 million.
Metsäliitto Cooperative's return on capital employed was 4.3 per cent (8.9). At
the end of September the equity ratio was 55.6 per cent and the gearing ratio 19
per cent (59.8% and -8%, respectively, at 31 December 2004). Interest-bearing net
liabilities were EUR 205 million (-82 million at 31 December 2004).
Thomesto, which handles wood procurement outside Finland, booked sales of EUR 350
million (341) and an operating profit of EUR 8 million (3). The higher operating
profit is due mainly to gains from the sale of shares. Wood deliveries to Finland
totalled around 2.9 million cubic metres (2.6).
Finnforest
Finnforest's sales were EUR 1,489 million (1,457). Operations showed a profit of
EUR 17 million (26) and the result before taxes was EUR -10 million (-3). The
result was affected by the labour dispute and by the poor profitability of
sawmilling.
Return on capital employed was down on this period last year at 2.4 per cent
(3.7). At the end of September the equity ratio was 30.2 per cent and the gearing
ratio 145 per cent (27.0% and 179%, respectively, at 31 December 2004).
Finnforest has published its own interim report on 28 October 2005.
Metsä Tissue
Metsä Tissue's sales made good progress during the review period. Sales for the
nine months to September were EUR 503 million (507). Operating profit was EUR 20
million (30). The decline in operating profit is due primarily to the labour
dispute. Profitability was also affected by the rise in the costs of energy,
transport and the company's main raw materials.
M-real
M-real booked sales of EUR 3,872 million (4,158) and an operating profit of EUR
63 million (45). The main non-recurring items included in operating profit were a
gain of EUR 81 million on the sale of 8 per cent of Botnia and a provision of EUR
15 million for the cost of the revitalization programme for M-real's Swedish
operations. Net non-recurring items increased operating profit by a total of EUR
70 million.
The weaker profitability is due primarily to the labour dispute that affected the
Finnish paper industry. The dispute reduced operating profit by an estimated EUR
85 - 90 million. The stronger euro, the fall in prices for uncoated fine paper,
the higher cost of petroleum-based raw materials and higher energy costs also
affected profitability.
Finance income and costs were EUR -125 million (-115). Exchange differences on
trade receivables and payables, finance items and the valuation of foreign
currency hedging instruments totalled EUR -26 million (-17). Net interest and
other finance costs were EUR -99 million (-98).
Other finance items include a loss of EUR 6 million on the valuation of interest
rate derivatives and impairment losses of EUR 5 million.
The result before tax was EUR -65 million (-69), earnings per share were EUR
-0.13 (0.43) and the return on capital employed was 2.3 per cent (1.6). Excluding
non-recurring items the corresponding figures were EUR -131 million, EUR -0.34
and 0.2 per cent.
At the end of September the equity ratio was 37.4 per cent and the gearing ratio
87 per cent (37.5% and 89%, respectively, at 31 December 2004).
M-real has published its own interim report on 28 October 2005.
Botnia
Sales for the period January - September were EUR 659 million (814) and the
result of operations was EUR 26 million (123). Sales and financial results for
the review period were badly affected by the labour dispute during the second
quarter and by the fact that production lines did not restart until the early
part of the third quarter.
The result before tax was EUR 28 million (122) and return on capital employed 3.1
per cent (13.0). The equity ratio was 70.2 per cent and the gearing ratio 5 per
cent.
Pulp is currently in good demand. Both producers' and buyers' pulp stocks are at
normal levels. Price rises have been introduced in Asia and rises have also been
announced for Europe.
Botnia's figures are consolidated 39% into M-real's accounts and 14% into the
Metsäliitto Group's 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 Metsäliitto's website at
www.metsaliitto.com.
Outlook
2005 has been a difficult year for the Finnish forest industry. Paper prices were
low, and the six-week strike during the summer also severely affected many
outside the industry. The unfavourable relationship between market prices for
sawn timber and raw material costs has also hit profitability. Had it not been
for the labour dispute, the Group's operating profit and result before tax for
this year would show an improvement on last year.
Demand for paper and board products is expected to remain good during the final
quarter. There are also signs that prices for certain paper grades are rising
slightly. However, it is also important for profitability that the current
revitalization measures are implemented as planned and that new areas for savings
continue to be sought.
The result for the final quarter, excluding non-recurring items, is not expected
to differ significantly from the previous quarter's result.
Espoo, 28 October 2005
BOARD OF DIRECTORS
For more information contact:
Ilkka Pitkänen, Chief Financial Officer, tel. +358 1046 94260
Lauri Peltola, SVP, Group Communications, tel. +358 1046 95263
BUSINESS SECTOR REVIEWS
Consumer Packaging
I-III/05 I-III/04 III/05 III/04 I-IV/04
Sales 633 789 196 264 1 045
EBITDA 93 140 36 51 187
- % of sales 14.7 17.7 18.6 19.2 17.8
Depreciation and
impairment losses -67 -73 -21 -25 -90
Operating profit 25 67 15 26 97
- % of sales 4.0 8.4 7.7 9.9 9.2
EBITDA = result before depreciation and impairment losses
The consumer packaging business booked sales of EUR 633 million (789) and an
operating profit of EUR 25 million (67) for the period January - September.
Compared with this period last year, the result of operations was reduced by
smaller delivery volumes resulting from Finland's labour disputes and by Botnia's
smaller result on operations. The result was also hit by the stronger euro, the
higher cost of petroleum-based raw materials and higher energy costs. The average
price of folding boxboard was unchanged.
Operating profit for July - September was EUR 15 million, compared with EUR -17
million for the previous quarter. The improvement is due to the end of the labour
dispute, the return of product stocks to normal levels, and to Botnia's improved
operating profit.
Papers
I-III/05 I-III/04 III/05 III/04 I-IV/04
Sales 2 214 2 185 735 738 2 944
EBITDA 163 201 77 73 237
- % of sales 7.4 9.2 10.4 9.9 8.0
Depreciation and
impairment losses -191 -195 -63 -65 -260
Operating profit -27 6 13 8 -23
- % of sales -1.2 0.3 1.8 1.0 -0.8
EBITDA = result before depreciation and impairment losses
The papers business produced sales of EUR 2,214 million (2,185) and a result on
operations of EUR -27 million (6). 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.
Profitability was hit by smaller delivery volumes, lower sales prices, the higher
cost of raw materials and energy, and the decline in Botnia's operating result.
The average sales price of coated fine paper was unchanged on this period last
year, whereas that for uncoated fine paper was some 3 per cent lower. The average
sales price of magazine paper was 1 per cent higher despite the stronger euro.
Operating profit for the third quarter was EUR 13 million, compared with a loss
of EUR 51 million for the second quarter. Third-quarter operating profit contains
no non-recurring items. The second-quarter result included non-recurring income
and expenses of around EUR -11 million.
The improvement in profitability over the previous quarter is attributable mainly
to the end of the labour dispute. The result also benefited from higher sales
prices for magazine paper. Sales prices for fine paper and specialities were
unchanged on the previous quarter.
MAP Merchant Group
I-III/05 I-III/04 III/05 III/04 I-IV/04
Sales 1 033 1 025 341 332 1 368
EBITDA 23 23 6 6 24
- % of sales 2.2 2.2 1.9 1.7 1.8
Depreciation and
impairment losses -5 -6 -2 -2 -7
Operating profit 18 17 4 4 18
- % of sales 1.7 1.7 1.3 1.2 1.3
EBITDA = result before depreciation and impairment losses
Sales for January - September were EUR 1 033 million (1,025) and operating profit
EUR 18 million (17).
Revitalization of merchanting operations is progressing as planned. Integration
of the operations of the Modo Merchants chain into James McNaughton's operations
that began late last year has now been completed.
Wood products
I-III/05 I-III/04 III/05 III/04 I-IV/04
Sales 1 489 1 457 468 458 1 923
EBITDA 70 79 20 23 94
- % of sales 4.7 5.4 4.4 5.1 4.9
Depreciation and
impairment losses -53 -53 -17 -18 -71
Operating profit 17 26 3 6 23
- % of sales 1.2 1.8 0.6 1.2 1.2
EBITDA = result before depreciation and impairment losses
Sales were EUR 1,489 million (1,457) and operating profit EUR 17 million (26).
The result continued to be affected by the unfavourable relationship between sawn
timber prices and the cost of wood raw material. Because of the labour dispute
output by the sawmills in June and July reached only half of the target. Plywood
production was kept at almost normal levels. Demand and prices for both birch and
conifer plywoods were better than for this period last year.
The Kerto LVL business is enjoying good results, healthy order stocks and a
strong market position. Hartola building modules plant, which is just starting
production, has a satisfactory stock of orders but its financial result fell
short of the target.
Others
I-III/05 I-III/04 III/05 III/04 I-IV/04
Sales 1) 1 115 1 113 351 341 1 459
Operating profit 30 24 9 -8 30
of which
Wood procurement
in Finland 14 19 1 8 25
International
wood procurement 8 3 6 2 3
Hygiene products 20 30 11 12 38
Others and Group
eliminations -12 -28 -9 -30 -36
1) Sales to companies outside the Group
Other operations mainly comprises Metsäliitto Cooperative, Thomesto and Metsä
Tissue. Figures also include Metsäliitto's 49.9 per cent share of the Vapo group
as from January 2005.
Autumn trading in wood raw material got off to a slow start, but has since picked
up week by week. Metsäliitto cut its purchasing target by one million cubic
metres to 16.7 million cubic metres in response to the labour dispute. During the
nine months to September 10.6 million cubic metres of wood was purchased from
private forests (10.9). The price of pine logs fell, but otherwise prices
remained stable.
Deliveries to mills in Finland, including wood chips, totalled 17.4 million cubic
metres, 11.9 million cubic metres of which was roundwood (13.7). Thomesto
delivered 2.9 million cubic metres of wood to Finland (2.6).
Metsäliitto buys all species of wood. Spruce and birch logs are in greatest
demand. Purchasing will focus more on terminal fellings than during the spring,
and quality pricing for pine logs will continue to be introduced. In much of
Finland, purchases of wood from sellers who are taxed on an area basis can be
arranged so that the wood is harvested before the end of the year.
Sales of hygiene products have progressed well, but rising raw material costs
have affected profitability. The main reason for the fall in operating profit on
last year, however, was the labour dispute in Finland.
The prevailing over-supply has prompted many producers to cut back production and
restructure operations. Thanks to its continuing development programme, Metsä
Tissue has no immediate need to take similar steps. Third-quarter operating
profit was similar to last year's, and the outlook for the rest of the year is
positive in the present competitive situation.
The Vapo group published its own interim report on 28 October 2005.
Production
1 000 units I-III/05 I-III/04 III/05 III/04 I-IV/04
Paper, t 2 938 2 977 1 036 1 021 4 008
Paperboard, t 713 1 005 292 355 1 330
Sawn goods, m3 2 976 3 171 813 988 4 185
Processed timber, m3
889 739 276 231 1 166
EW-products, m3 751 686 269 196 911
Pulp & CTMP, t 1 112 1 134 379 384 1 533
(M-real)
Pulp, t (Botnia) 1 530 1 849 600 617 2 450
METSÄLIITTO GROUP
2005 2004 2004
Income statement 1-9 1-9 Change 1-12
Sales 6 378 6 462 -84 8 598
Other operating income 121 114 7 135
Operating expenses -6 045 -6 035 -10 -8 066
Depreciation and
impairment losses -391 -401 10 -522
Operating profit 63 140 -77 144
Share of results in associates 0 5 -5 1
Net exchange gains / losses -23 -21 -2 -2
Other financial income
and expenses -158 -155 -3 -219
Result before tax
and minority interest -118 -31 -87 -76
Income taxes 8 -23 31 -28
Result after tax -110 -54 -56 -104
Minority interest 73 52 21 80
Result for the period -37 -2 -35 -24
2005 2004 Change 2004
Balance sheet 30.9 30.9 31.12
ASSETS
Non-current assets
Intangible assets 820 798 22 802
Tangible assets 4 248 4 148 100 4 148
Biological assets 57 196 -139 201
Financial assets
Interest bearing 67 67 0 59
Deferred tax receivables 109 84 25 102
Other non-interest bearing 190 293 -103 283
5 491 5 586 -95 5 596
Current assets
Inventories 1 233 1 160 73 1 172
Receivables
Interest bearing 9 11 -2 66
Non-interest bearing 1 666 1 692 -26 1 564
Cash and cash equivalents 212 252 -40 252
3 120 3 115 5 3 055
TOTAL 8 611 8 701 -90 8 651
MEMBERS' FUNDS AND LIABILITIES
Members' funds 1 319 1 376 -57 1 351
Minority interest 1 329 1 195 134 1 428
Total members' funds 2 648 2 571 77 2 779
Non-current liabilities
Deferred tax liabilities 464 496 -32 505
Post employment benefit 270 295 -25 271
obligations
Provisions 67 32 35 45
Interest bearing 2 831 2 908 -77 2 946
Other non-interest bearing 113 34 79 37
3 745 3 764 -19 3 805
Current liabilities
Interest bearing 932 925 7 768
Non-interest bearing 1 286 1 441 -155 1 299
2 218 2 366 -148 2 067
Total liabilities 5 963 6 130 -167 5 872
TOTAL 8 611 8 701 -90 8 651
Change in members'
funds Members' Retained Minority
capital Reserves earnings interest Total
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' capital 69 69
Increase in reserves 2 2
Effects of financial
instruments 4 4
Minority interest -44 -44
Others 7 7
Result for the period -2 -2
Members' funds 30.9.2004 500 63 812 1 195 2 570
Members' funds 1.1.2005 505 62 783 1 428 2 778
Translation differences 0 0
Dividends paid -34 -34
Transfers 10 -6 4
Increase in members' capital 32 32
Increase in reserves 1 1
Effects of financial
instruments 1 1
Minority interest -99 -99
Others 1 1
Result for the period -37 -37
Members' funds 30.9.2005 537 74 707 1 329 2 647
2005 2004 2004
Cash flow statement 1-9 1-9 1-12
Cash flow from operations
Result for the period -37 -2 -24
Adjustments total 509 535 672
Change in working capital -51 52 35
Cash generated from operations 421 585 683
Finance costs, net -154 -171 -225
Income taxes paid -48 -69 -85
Net cash from operations 219 345 373
Cash flow from investments
Acquisitions -46
Purchases of assets -438 -230 -434
Sold assets and others 203 238 283
Net cash from investments -281 8 -151
Cash flow from financing
Change in non-current loans
and other financial items 80 -258 -127
Dividends paid -58 -62 -62
Net cash flow from financing 22 -320 -189
Change in cash and cash
equivalents -40 33 33
Cash at beginning of period 252 219 219
Change in cash and cash
equivalents -40 33 33
Cash at end of period 212 252 252
METSÄLIITTO GROUP
Quarterly data 2005 2005 2005 2004 2004 2004 2004
III II I IV III II I
Sales by segment
Consumer packaging 196 199 238 256 264 267 258
Papers 735 732 747 759 738 710 737
MAP Merchant Group 341 351 341 343 332 339 354
Wood products 468 553 468 466 458 529 470
Others 351 336 428 346 341 395 377
- internal sales -34 -37 -35 -35 -35 -37 -35
Group sales 2057 2134 2187 2135 2099 2204 2160
Operating profit by segment
Consumer packaging 15 -17 27 30 26 20 21
Papers 13 -51 10 -30 7 -8 6
MAP Merchant Group 5 7 6 1 4 7 7
Wood products 3 15 -1 -4 6 14 7
Others 9 -11 32 7 -8 3 29
Group operating profit 45 -56 74 4 35 36 70
- % of sales 2.2 2.6 3.4 0.2 1.7 1.6 3.2
Share of results in
associates 1 -2 0 -4 0 1 4
Net exchange gains / losses 0 -12 -11 19 0 -6 -15
Other financial income &
expenses -33 -79 -45 -64 -55 -22 -78
Result before tax 13 -149 18 -45 -21 9 -19
Income taxes -5 20 -7 -5 -14 -14 5
Result after tax 8 -129 11 -50 -35 -5 -14
Minority interest -2 73 3 28 19 12 22
Result for the period 6 -56 14 -22 -16 6 8
METSÄLIITTO GROUP
Reconciliation of profit
Effects of
Income statement FAS transition IFRS
1-9/2004 to IFRS 1-9/2004
Sales 6 424 38 6 462
Other operating income 97 17 114
Operating expenses -5 999 -36 -6 035
Share of results in associates -1 1 0
Depreciation and impairment
losses -468 67 -401
Operating profit 54 86 140
Share of results in associates 0 5 5
Net exchange gains / losses 5 -26 -21
Other financial income and
expenses -141 -14 -155
Result before tax
and minority interest -83 52 -31
Income taxes -1 -22 -23
Result after tax -84 30 -54
Minority interest 74 -22 52
Result for the period -10 8 -2
Reconciliation of balance sheet
Effects of
Balance sheet FAS transition IFRS
30.9.2004 to IFRS 30.9.2004
ASSETS
Non-current assets
Intangible assets 808 -10 798
Tangible assets 4 211 -63 4 148
Biological assets 0 196 196
Financial assets
Interest bearing 69 -2 67
Deferred tax receivables 50 34 84
Other non-interest bearing 286 7 293
5 424 162 5 586
Current assets
Inventories 1 165 -5 1 160
Receivables
Interest bearing 14 -3 11
Non-interest bearing 1 688 4 1 692
Cash and cash equivalents 259 -7 252
3 127 -12 3 115
TOTAL 8 551 150 8 701
MEMBERS' FUNDS AND LIABILITIES
Members' funds 1 585 -209 1 376
Minority interest 1330 -135 1 195
Total members' funds 2 915 -344 2 571
Non-current liabilities
Deferred tax liabilities 435 61 496
Post employment benefit
obligations 53 242 295
Provisions 37 -5 32
Interest bearing 2 879 29 2 908
Other non-interest bearing 36 -2 34
3 441 323 3 764
Current liabilities
Interest bearing 812 113 925
Non-interest bearing 1 382 59 1 441
2 195 171 2 366
Total liabilities 5 636 494 6 130
TOTAL 8 551 150 8 701
