INTERIM REPORT 1 January - 30 September 2005
Raisio plc Stock Exchange Release 1 Nov 2005 at 11.00 Finnish time
INTERIM REPORT 1 January 30 September 2005
Third-quarter operating result on par with the comparison period
· Turnover in JulySeptember amounted to EUR 110.7 million (EUR
109.6 million in continuing operations in JulySeptember 2004).
· Operating result was EUR 3.8 million (EUR 3.8 million).
· Raisios full-year turnover and operating result are expected
to correspond to last years figures for continuing operations,
excluding one-off items.
This interim report has been prepared in accordance with the
principles of the IFRS. Raisio adopted the International Financial
Reporting Standards as of the beginning of 2005. This adoption has
been explained in a separate report on 22 April 2005.
In the text of this review, figures for the comparison period have
been presented in brackets and they represent the continuing
operations unless stated otherwise.
Key figures, result
7-9/2005 7-9/2004 1-9/2005 1-9/2004 2004
Turnover,
EUR million 110.7 109.6* 321.7 325.8* 437.9*
Operating result,
EUR million 3.8 3.8* 10.8 8.7** 10.6**
% of turnover 3.4 3.5* 3.3 2.7** 2.4**
Result before taxes,
EUR million 3.9** 3.9* 12.6** 8.0** 10.7**
Earnings per share,
EUR 0.02** 0.07* 0.05** 0.06** 0.07**
* continuing operations
** continuing operations, excluding one-off items
Key figures, balance sheet
1-9/2005 1-9/2004 2004
Return on investment, % 5.0 58.4 46.7
Equity ratio, % 76.6 69.7 76.4
Gearing, % -28.2 -46.4 -41.9
Equity per share, EUR 2.15 2.27 2.29
CEO Rabbe Klemets:
Turnover in the third quarter was slightly higher than that of
the comparison period, mainly thanks to growth in ingredients
sales. Polish operations continued to grow, but malt sales faced
difficulties due to the increase in Russias own capacity and a
significant drop in prices.
Raisio Life Sciences improved its segment result but Raisio
Nutritions segment result weakened due to the rollout of the oat-
soy plant, among others. Groups operating result was at last
years level.
Our growth plans in Russia are proceeding in establishing oat
flake and feed production. Scandic Feed, a 50/50 owned joint
venture of Raisio and Lännen Tehtaat, will be in charge of
commencing farm feed production in northwestern Russia.
Raisio has a strong balance sheet and a high equity ratio.
Authorised by the Annual General Meeting last spring, Raisios
Board of Directors initiated share repurchases in August as a way
to return capital to the companys shareholders. To date, we have
acquired a total of some 2.7 million shares.
RESULT
Raisio recorded a turnover of EUR 110.7 million (EUR 109.6
million) in the third quarter. The turnover of Raisio Life
Sciences increased slightly, while that of Raisio Nutrition
decreased.
Turnover for JanuarySeptember amounted to EUR 321.7 million (EUR
325.8 million), of which turnover from outside Finland represented
37.1% (36.8%), or EUR 119.2 million (EUR 119.8 million).
Raisios operating result for the third quarter was EUR 3.8
million (EUR 3.8 million). Operating result remained on par with
the comparison period regardless of an increased emphasis on
research and development, as well as marketing. Depreciations,
allocated to operations in the income statement, totalled EUR 6.3
million in JulySeptember and EUR 18.4 million in
JanuarySeptember. The operating result for JanuarySeptember
amounted to EUR 10.8 million (EUR -23.8 million or EUR 8.7 million
excluding one-off items).
The result before taxes was EUR 5.6 million or EUR 3.9 million
excluding one-off items (EUR 3.9 million) for the third quarter
and EUR 14.4 million for the January to September period or EUR
12.6 million excluding one-off items (EUR -26.4 million or EUR 8.0
million excluding one-off items). Raisios net financial items for
the third quarter totalled EUR 2.1 million (EUR 0.2 million). The
sale of shares in Lännen Tehtaat increased financial income by EUR
1.7 million. Net financial items in the January to September
period amounted to EUR 3.9 million or EUR 2.2 million excluding
one-off items (EUR -2.2 million or EUR -0.2 million excluding one-
off items).
The result for the third quarter was EUR 4.1 million or EUR 2.4
million excluding one-off items (EUR 11.0 million) and for
JanuarySeptember EUR 10.2 million or EUR 8.4 million excluding
one-off items (EUR -22.4 million or EUR 12.2 million excluding one-
off items). Taxes on the comparison period were decreased by
deferred tax claims of EUR 7.5 million.
Earnings per share in JulySeptember was EUR 0.02 or EUR 0.02
excluding one-off items (EUR 0.07). In JanuarySeptember, EPS
totalled EUR 0.06 or EUR 0.05 excluding one-off items (EUR 1.25 or
EUR 0.06 excluding one-off items).
Cash flow from business operations in the third quarter amounted
to EUR 15.5 million (EUR 23.5 million) and to EUR 4.8 million in
the January to September period (EUR 40.5 million).
In 2004 regular taxation, the divestment of Raisio Chemicals has
been considered according to Raisio plcs financial statements.
BALANCE SHEET AND FINANCIAL POSITION
The balance sheet total at the end of September was EUR 478.2
million (EUR 514.3 million on 31 December 2004), while
shareholders equity amounted to EUR 350.8 million (EUR 378.1
million on 31 December 2004). Equity per share at the end of
September was EUR 2.15 (EUR 2.29 on 31 December 2004).
Raisio's net interest-bearing debt was EUR -103.2 million at the
end of September (EUR -164.6 million on 31 December 2004). The
equity ratio at the end of September was 76.6% (76.4% on 31
December 2004) and the gearing ratio -28.2% (-41.9% on 31 December
2004).
Working capital decreased to EUR 83.0 million (30 June 2005: EUR
89.3 million; 31 December 2004: EUR 57.5 million). Gross
investments totalled EUR 11.7 million (EUR 4.4 million) in the
third quarter and EUR 33.8 million in the January to September
period (EUR 12.7 million). The biggest single investments involved
the construction of the oat-soy plant in Turku, the expansion of
the stanol ester plant and the modernisation of the ERP system.
BUSINESS SEGMENTS
Raisio Nutrition
Raisio Nutrition recorded a turnover of EUR 97.4 million (EUR 99.0
million) in the third quarter. Food sales showed a slight upward
trend thanks to, among others, the good development in new
products and Polish margarine sales. Meanwhile, margarine sales
fell in Sweden. To develop marketing in the margarine business,
Raisios own sales organisation will take back responsibility for
sales in Sweden. The decrease in feed and malt prices weakened the
third quarters turnover.
Turnover in the January to September period totalled EUR 281.6
million (EUR 292.4 million).
Raisio Nutrition turnover, EUR million
7-9/2005 7-9/2004 1-9/2005 1-9/2004 2004
Food 52.3 51.5 154.4 161.2 217.1
Margarine products 29.1 28.3 86.0 88.8 121.6
Milling products 19.7 20.8 56.3 58.2 75.1
Food potato products 4.2 4.7 14.6 16.3 21.2
Others 0.0 0.0 0.0 0.8 0.8
Internal sales -0.7 -2.3 -2.4 -3.0 -1.7
Feed and malt 48.9 51.8 139.0 144.6 190.7
Feeds 42.9 44.2 123.0 122.9 165.2
Malt 6.1 7.6 14.8 20.8 24.7
Others 0.1 0.1 1.9 1.2 1.4
Internal sales -0.2 -0.1 -0.7 -0.4 -0.5
Internal sales for
business segment -3.8 -4.3 -11.9 -13.4 -17.9
Total 97.4 99.0 281.6 292.4 389.9
Raisio Nutrition booked a segment result of EUR 3.1 million (EUR
3.4 million) in the third quarter. The figure includes the
expenses of approximately EUR 0.5 million incurred from the
rollout of the oat-soy plant. While the potato business performed
weaker, the profitability of the feed and oil milling businesses
improved. Poor development in malt business continued.
Raisio Nutritions segment result for JanuarySeptember was EUR
8.9 million (EUR -14.5 million or EUR 5.8 million excluding one-
off items), i.e. 3.2% of the turnover.
Raisio and Finn Cereal agreed on the manufacture of pure oat
products, developed especially for people with celiac disease.
Production investments have been initiated at Finn Cereals plant
in Kokemäki, Finland. Production will start next spring, with the
introduction of products scheduled for May 2006.
Grain crops this autumn will reach 4 billion kilograms and the
rapeseed and potato crops are also better than last year. The
yield per hectare of Camelina, Raisios new contract farming oil
plant, exceeded expectations and showed good quality. This will
enable Camelina oil, abundant with healthy omega-3 fatty acids, to
be added gradually to Raisios products as of early 2006.
In a survey of 876 Finnish brands, published in
Markkinointi&Mainonta magazine, Elovena was the 15th most
respected brand (22nd in 2004). The Elovena product range was
expanded with muesli products in September.
Raisio Life Sciences
The turnover for Raisio Life Sciences rose to EUR 14.4 million
(EUR 11.7 million) in the third quarter thanks to growth in
ingredients sales. In Benecol end-products, growth was seen in
both spreads and yoghurt drinks.
Turnover in the January to September period totalled EUR 43.9
million (EUR 37.2 million).
Raisio Life Sciences turnover, EUR million
7-9/2005 7-9/2004 1-9/2005 1-9/2004 2004
Ingredients 12.3 9.6 37.3 30.9 44.7
Diagnostics 2.1 2.1 6.6 6.2 8.6
Total 14.4 11.7 43.9 37.2 53.3
The segment result of Raisio Life Sciences rose to EUR 1.7 million
(EUR 0.8 million) in the third quarter thanks to strong growth in
the ingredients business.
Raisio Life Sciences segment result for JanuarySeptember was EUR
5.6 million (EUR -6.4 million or EUR 2.8 million excluding one-off
items), i.e. 12.8% of the turnover.
The investment made to increase the capacity of the stanol ester
plant in Raisio has progressed as planned, and the extension will
come on line in early 2006.
RESEARCH AND DEVELOPMENT
Projects related to research and development are proceeding as
planned. The oat-soy plant constructed in Turku has progressed to
the process equipment rollout phase. New products will be launched
in early 2006.
Research and development costs amounted to EUR 2.6 million (EUR
1.8 million) in the third quarter, and to EUR 7.7 million (EUR 5.9
million) in the January to September period, representing 2.4%
(1.8%) of turnover.
PERSONNEL
Raisio employed 1,397 people at the end of September (1,412 on 31
December 2004), 33% of whom worked outside Finland (32% on 31
December 2004).
At the end of September, Raisio Nutrition employed 1,050 people,
Raisio Life Sciences 143 people, and Research and Development 119
people.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the Helsinki
Stock Exchange in the January to September period totalled 95.8
million (91.5 million). The value of share trading was EUR 219.7
million (EUR 145.9 million), and the average price was EUR 2.29
(EUR 1.59). The closing price on 30 September 2005 was EUR 2.32.
The price of series V shares rose by 22.1% from the beginning of
the year.
A total of 1.3 million (1.1 million) restricted shares were traded
in JanuarySeptember. The value of share trading was EUR 3.0
million (EUR 1.8 million), and the average price was EUR 2.34 (EUR
1.64). The closing price on 30 September 2005 was EUR 2.36. The
price of the Series K share rose by 27.6% from the beginning of
the year.
On 30 September 2005 Raisio had 43,417 registered shareholders. Of
all shares, 17.1% were in foreign holding (11.7% on 31 December
2004) with the corresponding value for free shares being 21.7%
(14.8% on 31 December 2004).
The market value of Raisio plcs shares at the end of September
amounted to EUR 384.5 million (EUR 312.0 million on 31 December
2004).
REPURCHASE AND DISPOSAL OF COMPANY SHARES
Based on the authorisation given by the Annual General Meeting on
31 March 2005, Raisio plcs Board of Directors decided on 2 August
2005 to begin a share repurchase programme. Share purchases were
initiated on 10 August 2005 and will continue until further
notice.
The shares may be repurchased to develop the capital structure of
the company, to be used for funding or implementing acquisitions
or other arrangements, or to be otherwise further assigned or
cancelled.
The programme allows the purchase of a maximum of 6,529,289 free
shares and a maximum of 1,728,162 restricted shares, that is, a
maximum of 5% of the companys share capital and votes. If
restricted shares are converted into free shares, the maximum
numbers for different share types will change. Share repurchase
will be carried out at the price determined in the open market on
the Helsinki Stock Exchange and will not follow the shareholders
holding ratios. Detailed information about the content of the
authorisation is available in the stock exchange release dated 16
February 2005.
From 10 August 2005 to 30 September 2005 Raisio purchased a total
of 2,074,000 free shares at an average price of EUR 2.37 and
15,400 restricted shares at an average price of EUR 2.41. The
free shares purchased by the company account for 1.59% of all free
shares outstanding and restricted shares for 0.04% of all
restricted shares outstanding. Combined, the shares acquired by
the company represent 1.27% of the companys share capital and
0.29% of overall votes. The book value of the repurchased shares
is EUR 351,412, representing 1.27% of the share capital. The trade
price for the shares was EUR 4,960,857. Prior to these purchases,
the company and its subsidiaries did not hold Raisio plcs shares.
The share repurchases are not expected to have a significant
impact on the distribution of share holdings or voting rights in
the company. Since the shares were repurchased in the open market
on the Helsinki Stock Exchange with no information about the
vendors, it is impossible to determine the portion of shares
purchased from insiders, as defined in Section 1:4.1 of the
Companies Act, of the companys share capital and voting rights.
The Annual General Meeting held on 31 March 2005 authorised the
Board of Directors to dispose of repurchased shares. This
authorisation has not been used to date.
OUTLOOK FOR 2005
In the last quarter of 2005, the rollout of the oat-soy plant and
the marketing efforts made for the product launches weigh on the
result of the food business. The low price level of malt continues
to erode profitability.
Raisios full-year turnover and operating result are expected to
correspond to last years figures for continuing operations,
excluding one-off items.
Raisio, 1 November 2005
Raisio plc
Board of Directors
Further information:
Taru Narvanmaa, Executive Vice President, Communications and
Investor Relations, tel. +358 50 5909 398
Jyrki Paappa, Chief Financial Officer, tel. +358 50 5566 512
A press and analyst event will be organised in Helsinki on 1
November 2005 at 3 p.m. Finnish time. A teleconference in English
will be held on 1 November 2005 at 4:30 p.m. Finnish time, tel.
+358 (0)9 8248 3662, PIN code 775036.
The figures in this Interim Report are not audited.
INCOME STATEMENT (EUR million)
1-9/2005 1-9/2004 2004
CONTINUING OPERATIONS:
Turnover 321.7 325.8 437.9
Cost of sales -253.6 -271.3 -360.1
Gross profit 68.1 54.5 77.9
Other operating income
and expenses, net -57.3 -78.4 -96.3
Operating result 10.8 -23.8 -18.4
Financial income and expenses, net 3.9 -2.2 -1.6
Share of result of associated companies
and joint ventures -0.3 -0.4 -0.4
Result before taxes 14.4 -26.5 -20.3
Income tax -4.2 4.1 1.2
Result for the period
from the continuing operations 10.2 -22.4 -19.1
DISCONTINUED OPERATIONS:
Result for the period
from discontinued operations - 230.5 232.1
RESULT FOR THE PERIOD 10.2 208.1 213.0
Attributable to:
Equity holders of the parent 9.7 206.6 211.3
Minority interest 0.4 1.5 1.7
Earnings per share from the profit
attributable to equity holders
of the parent (EUR) 0.06 1.25 1.28
Earnings per share from continued
operations (EUR) 0.06 -0.14 -0.12
Earnings per share from discontinued
operations (EUR) - 1.39 1.40
ONE-OFF ITEMS (EUR million)
1-9/2005 1-9/2004 2004
CONTINUING OPERATIONS:
Raisio Nutrition
Sales profit 3.3 3.3
Write-downs -23.6 -24.8
Cancellation of IFRS pension liabilities - 3.1
Raisio Life Sciences
Write-downs -9.2 -9.2
Other operations -3.0 -1.4
Impact on result for the period
from the continuing operations -32.5 -29.0
Financial items 1.7 -2.0 -2.0
DISCONTINUED OPERATIONS:
Sales profit 227.2 228.3
Impact of one-off items on result
before taxes 1.7 192.7 197.3
BALANCE SHEET (EUR million)
30.9.05 30.9.04 31.12.04
Non-current assets
Intangible assets 12.2 9.5 10.2
Goodwill 16.7 15.5 17.0
Tangible assets 138.1 129.1 127.0
Shares in associated companies
and joint ventures 5.4 1.6 1.6
Investments available for sale 2.2 7.1 8.0
Receivables 6.0 7.5 6.7
Deferred tax assets 7.7 13.8 9.5
Current assets
Inventories 70.0 57.6 56.5
Accounts receivables and
other receivables 77.4 57.6 63.8
Financial assets at fair value
through profit or loss 135.5 253.9 210.4
Cash in hand and at banks 7.0 6.4 3.8
Total assets 478.2 559.6 514.3
Equity attributable to
equity holders of the parent 350.8 374.8 378.1
Minority interest 15.1 14.5 14.7
Deferred tax liability 10.2 12.9 10.3
Pension liabilities 0.7 4.0 0.7
Non-current interest bearing liabilities 15.8 28.5 26.0
Accounts payable and other liabilities 62.9 77.7 61.8
Current interest bearing liabilities 22.7 47.3 22.8
Total equity and liabilities 478.2 559.6 514.3
CHANGES IN GROUP EQUITY (EUR million)
Sha- Sha- Re- Ot- Own Trans- Re- Re- To- Mino- To-
re- re- ser- her sha- lati- valu- tai- tal rity tal
ca- pre- ve- re- res on ati- ned in-
pi- mium fund ser- diffe- on ear- te-
tal acc- ves ren- re- nings rest
ount ces serve
Equity at
1.1.2004
27.8 2.9 88.8 0.2 0.0 0.0 0.0 69.9 189.5 23.1 212.6
Dividend
paid - - - - - - - -21.5 -21.5 -0.2 -21.7
Changes in
translation
differen-
ces - - 0.0 - - 0.8 - 0.0 0.8 0.2 1.0
Net profit
for review
period- - - - - - - 206.6 206.6 1.5 208.1
Translation
differences
booked in the
P&L in connection
to the divestment of
RC - - - - - -0.7 - - -0.7 - -0.7
Divestment of
RC - - -0.2 -0.2 - - - 0.4 0.0 -9.7 -9.7
Exchange
differences
from receivables
considered to be
net investments
from a foreign
unit - - - - - 0.0 - - 0.0 - 0.0
Tax of
previous
- - - - - 0.0 - - 0.0 - 0.0
Other
changes
- - 0.0 - - - - 0.0 0.0 -0.3 -0.3
Equity at
30.9.2004
27.8 2.9 88.6 0.0 0.0 0.1 0.0 255.4 374.8 14.5 389.3
Equity at
1.1.2005
27.8 2.9 88.6 0.0 0.0 -2.2 0.0 261.0 378.1 14.7 392.8
Effects of
adopting
IAS 32 and IAS
39 - - - - - - 0.3 -0.3 0.0 - 0.0
Dividend
paid - - - - - - - -34.7 -34.7 - -34.7
Changes in
translation
differen-
ces - - - - - 3.1 - - 3.1 - 3.1
Repurchase
of own
sha-
res - - - - -5.0 - - - -5.0 - -5.0
Exchange differences
from receivables
considered to be
net investments
from a foreign
unit - - - - - -0.3 - - -0.3 - -0.3
Tax of
previous
- - - - - 0.1 - - 0.1 - 0.1
Cash flow
hedges- - - - - - - - 0.0 - 0.0
Transferred to
the income statement
with taxes
deducted
- - - - - - -0.1 - -0.1 - -0.1
Investments available
for sale
Transferred to
the income statement
with taxes
deducted
- - - - - - -0.2 - -0.2 - -0.2
Net profit
for review
period- - - - - - - 9.7 9.7 0.4 10.2
Other
changes
- - 0.0 - - - - 0.0 0.0 0.0 0.0
Equity at
30.9.2005
27.8 2.9 88.6 0.0 -5.0 0.6 0.0 235.8 350.8 15.1 365.9
CASH FLOW STATEMENT (EUR million)
1-9/2005 1-9/2004 2004
Cash flow before change
in working capital 29.3 36.0 44.6
Change in working capital -24.2 16.2 13.1
Financial items and taxes -0.3 -11.6 -11.9
Cash flow from business operations 4.8 40.5 45.9
Investments -33.8 -24.4 -32.5
Proceeds from sale of fixed assets 7.6 403.2 406.3
Cash flow from investments -26.2 378.8 373.8
Change in non-current loans -10.7 -195.5 -219.2
Change in current loans -0.6 3.9 0.3
Change in loan receivables - -1.1 -1.0
Repurchase of own shares -4.7 - -
Dividends paid -34.7 -1.9 -21.7
Cash flow from financial operations -50.7 -194.6 -241.6
Unallocated items -0.4 1.0 1.4
Change in liquid funds -72.6 225.7 179.5
Liquid funds at the beginning
of the period 214.1 34.6 34.6
Impact of change of market value on
liquid funds 0.9 - -
Liquid funds at the end of the period 142.4 260.3 214.1
TURNOVER BY SEGMENT (EUR million)
1-9/2005 1-9/2004 2004
Raisio Nutrition 281.6 292.4 389.9
Raisio Life Sciences 43.9 37.2 53.3
Other operations 0.7 - -
Interdivisional turnover -4.6 -3.8 -5.3
Total turnover from
continuing operations 321.7 325.8 437.9
Discontinued operations - 192.7 192.7
Eliminations - -3.6 -3.6
Total turnover 321.7 514.8 627.0
SEGMENT RESULTS (EUR million)
(Operating profit + share of result of associates and joint
ventures)
1-9/2005 1-9/2004 2004
Raisio Nutrition 8.9 -14.5 -10.2
Raisio Life Sciences 5.6 -6.4 -4.8
Other operations -4.1 -3.4 -3.9
Eliminations 0.0 0.0 0.1
Segment result from
continuing operations 10.5 -24.3 -18.8
Discontinued operations - 239.4 240.9
Eliminations - - -
Total 10.5 215.2 222.2
NET ASSETS BY SEGMENT (EUR million)
30.9.05 30.9.04 31.12.04
Raisio Nutrition 176.4 141.2 147.5
Raisio Life Sciences 57.5 48.2 47.0
Other operations and unallocated items 132.0 199.9 198.3
Total 365.9 389.3 392.8
INVESTMENTS BY SEGMENT (EUR million)
1-9/2005 1-9/2004 2004
Raisio Nutrition 24.9 9.7 16.0
Raisio Life Sciences 4.7 1.2 2.8
Other operations 7.8 1.9 4.4
Eliminations -3.6 -0.2 -1.2
Total investments from
continuing operations 33.8 12.7 22.1
Discontinued operations - 12.8 12.8
Total investments 33.8 25.4 34.8
TURNOVER BY MARKET AREA (EUR million)
1-9/2005 1-9/2004* 2004*
Finland 202.5 206.0 280.8
Poland 26.8 23.7 33.4
Russia 22.7 29.3 32.4
Other Europe 65.6 62.4 85.1
ROW 4.1 4.4 6.2
Total 321.7 325.8 437.9
* continuing operations
QUARTERLY PERFORMANCE (EUR million)
7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2005 2005 2005 2004 2004 2004 2004
Turnover of Raisio
Nutrition 97.4 98.4 85.9 97.5 99.0 105.4 88.0
Turnover of Raisio
Life Sciences 14.4 16.1 13.4 16.1 11.7 13.7 11.8
Other operations 0.3 0.3 0.2 0,0 0.0 0.0 0.0
Interdivisional
turnover -1.4 -1.8 -1.4 -1.5 -1.1 -1.5 -1.1
Total turnover 110.7 112.9 98.1 112.1 109.6 117.5 98.7
Segment result of
Raisio Nutrition 3.1 3.3 2.5 4.3 3.4 -17.3 -0.6
Segment result of
Raisio Life Sciences 1.7 1.7 2.2 1.6 0.8 -8.1 0.9
Other operations -1.5 -2.0 -0.6 -0.5 -0.5 -2.7 -0.2
Eliminations 0.2 0.0 -0.1 0.0 0.0 0.0 0.0
Total segment results 3.5 2.9 4.0 5.5 3.7 -28.1 0.1
Financial income
and expenses, net 2.1 1.0 0.8 0.7 0.2 -1.3 -1.1
Result before taxes 5.6 3.9 4.8 6.1 3.9 -29.4 -0.9
Income tax -1.5 -1.4 -1.3 -2.8 7.1 -2.4 -0.7
Result for the period
from the continuing
operations 4.1 2.5 3.5 3.3 11.0 -31.8 -1.6
KEY INDICATORS
1-9/2005 1-9/2004 2004
Return on equity, ROE, % 3.6 92.2 70.4
Return on investment, ROI, % 5.0 58.4 46.7
Interest bearing liabilities
at end of period, EURm 39.2 79.7 49.5
Gross investments, EURm 33.8 25.4 34.8
Gross investments from
continuing operations, EURm 33.8 12.7 22.1
% of turnover from
continuing operations 10.5 3.9 5.0
R & D expenditure, EURm 7.7 10.5 12.9
R & D expenditure from
continuing operations, EURm 7.7 5.9 8.4
% of turnover from
continuing operations 2.4 1.8 1.9
Average personnel 1,421 2,198 2,005
Average personnel in
continuing operations 1,421 1,522 1,498
Equity ratio, % 76.6 69.7 76.4
Gearing, % -28.2 -46.4 -41.9
Earnings/share, EUR 0.06 1.25 1.28
Cash flow from operations/share, EUR 0.03 0.25 0.28
Equity/share, EUR 2.15 2.27 2.29
Average number of shares
during the period, in 1,000s*
Free shares 130,388 130,414 130,455
Restricted shares 34,562 34,735 34,694
Total 164,950 165,149 165,149
Average number of shares
at end of period, in 1,000s*
Free shares 128,512 130,575 130,585
Restricted shares 34,548 34,574 34,564
Total 163,060 165,149 165,149
Market capitalisation of shares
at end of period, EURm
Free shares 303.0 258.5 248.1
Restricted shares 81.6 67.4 63.9
Total 384.5 325.9 312.0
*Number of shares without own shares
CONTINGENT LIABILITIES (EUR million)
30.9.05 30.9.04 31.12.04
Assets given for security
For the company
Mortages on real estate 16.9 56.6 52.7
Securities pledged 0.0 0.0 0.5
Corporate mortgages 34.3 34.4 34.4
Contingent off-balance sheet
Non-cancellable other leases
Minimum lease payments 2.4 1.9 1.8
Contingent liabilities
for the Group companies
Guarantees - 1.0 -
Contingent liabilities for the Company 1.5 1.5 2.1
Contingent liabilities for others
Guarantees 0.1 32.5 0.1
Other liabilities 1.5 0.0 -
DERIVATIVE CONTRACTS (EUR million)
30.9.05 30.9.04 31.12.04
Nominal values of derivative contracts
Raw material futures 0.6 3.3 0.8
Forward electricity contracts 0.0 8.1 5.6
Currency forward contracts 20.2 33.0 35.9
