RAISIO IMPROVED ITS PROFITABILITY
Raisio plc Financial statements review 11 February 2010, 10:00 a.m.
RAISIO PLC'S FINANCIAL STATEMENTS REVIEW 2009
RAISIO IMPROVED ITS PROFITABILITY
October-December 2009, continuing operations
- Net sales totalled EUR 91.5 million (EUR 118.5 million).
- EBIT was EUR 4.2 million (EUR 3.8 million), accounting for 4.6% (3.2%) of net
sales.
- Cash flow from operations was EUR 23.9 million (EUR 26.4 million).
January-December 2009, continuing operations
- Raisio's net sales in 2009 were EUR 375.9 million (EUR 463.2 million).
- EBIT, excluding one-off items, was EUR 20.5 million (EUR 20.2 million), or
5.5%
(4.4%) of net sales.
- Cash flow from operations was EUR 51.5 million (EUR 52.7 million).
- Earnings per share, excluding one-off items, were EUR 0.09 (EUR 0.10).
- The Board of Directors proposes raising the dividend to EUR 0.09 (EUR 0.07)
per
share.
Outlook for 2010
In 2010-2011, Raisio will move to a growth phase. We expect a considerable
increase in net sales in 2010. The cost of growth projects is predicted to
impact the Group's profitability, especially in the early part of the year. The
target EBIT of 10 per cent for the Brands Division and 5 per cent for the
Business to Business Division will not yet be achieved in 2010. Our target is to
maintain the existing level of profitability at the beginning of the growth
phase.
Raisio Group's key figures
--------------------------------------------------------------------------------
| | | 10-12/200 | 10-12/200 | 2009 | 2008 |
| | | 9 | 8 | | |
--------------------------------------------------------------------------------
| Results from continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Net sales | M€ | 91.5 | 118.5 | 375.9 | 463.2 |
--------------------------------------------------------------------------------
| Change in net sales | % | -22.8 | - | -18.8 | - |
--------------------------------------------------------------------------------
| EBIT | M€ | 4.2 | 3.8 | 19.5 | 24.4 |
--------------------------------------------------------------------------------
| One-off items | M€ | 0.0 | 0.0 | -1.1 | +4.2 |
--------------------------------------------------------------------------------
| EBIT, excluding one-off | M€ | 4.2 | 3.8 | 20.5 | 20.2 |
| items | | | | | |
--------------------------------------------------------------------------------
| EBIT | % | 4.6 | 3.2 | 5.5 | 4.4 |
--------------------------------------------------------------------------------
| Depreciation and | M€ | 5.4 | 5.7 | 17.0 | 18.0 |
| impairment * | | | | | |
--------------------------------------------------------------------------------
| EBITDA * | M€ | 9.6 | 9.4 | 37.5 | 38.2 |
--------------------------------------------------------------------------------
| Net financial expenses * | M€ | 0.3 | -0.2 | -0.5 | -0.4 |
--------------------------------------------------------------------------------
| Earnings per share (EPS) | € | 0.02 | 0.03 | 0.09 | 0.10 |
| * | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | € | 0.02 | 0.03 | 0.09 | 0.10 |
| (EPS), diluted * | | | | | |
--------------------------------------------------------------------------------
| Balance sheet | | | | | |
--------------------------------------------------------------------------------
| Equity ratio | % | - | - | 73.4 | 77.9 |
--------------------------------------------------------------------------------
| Gearing | % | - | - | -46.6 | -20.8 |
--------------------------------------------------------------------------------
| Net interest-bearing | M€ | - | - | -150.2 | -58.2 |
| debt | | | | | |
--------------------------------------------------------------------------------
| Equity per share | € | | | 2.06 | 1.79 |
--------------------------------------------------------------------------------
| Dividend per share | € | - | - | 0.09** | 0.07 |
--------------------------------------------------------------------------------
| Gross investments | M€ | 3.0 | 4.0 | 10.0 | 26.9 |
--------------------------------------------------------------------------------
| Share | | | | | |
--------------------------------------------------------------------------------
| Market capitalisation | M€ | - | - | 417.4 | 234.8 |
--------------------------------------------------------------------------------
| Enterprise value (EV) | M€ | - | - | 257.1 | 176.6 |
--------------------------------------------------------------------------------
| EV/EBITDA | | | | 6.9 | 4.6 |
--------------------------------------------------------------------------------
* Excluding one-off items
** Board of Directors' proposal to the Annual General Meeting
Figures for the comparison period are given in brackets.
Chief Executive's review
“In line with its strategy, Raisio is now moving to a growth phase after
turnaround and improved profitability. Raisio's main target in 2010 is to
increase net sales. This will be sought through organic growth in the home
market and through acquisitions in Europe.
The company's decision to divest the margarine business was a very profitable
one, but also a responsible from shareholders point of view. Rather than a high
selling price, however, the main reason for the divestment was the fact that
margarine consumption is not increasing in Europe or Finland and there is more
and more competition. A company of Raisio's size is better to focus on small and
growing product categories and reduce business risk in mature categories, in
which the company cannot be actively involved in the consolidation process due
to its size. Margarine would not have been a growth engine for Raisio, so we
decided to let go of it in order to grow elsewhere.
The Group's 2009 EBIT was very good. Under difficult circumstances, the Business
to Business Division reported a positive result, which was well done. The strong
positive undertone for the Brands Division lies in the daily renewal of orders
also in the future as people are eating daily. Basic demand is stable, and a
company that offers pleasure, healthiness, environmental friendliness, high
quality and an attractive price has excellent future prospects.
Consumers are showing an increasing need for information, which has put strong
emphasis on the ecological aspects of products and responsible business
operations. This development trend proves that Raisio, as a pioneer, is heading
in the right direction. The Group's Business to Business Division boosts the
competitiveness of the Finnish food chain by offering more environmentally
friendly solutions to the milk and meat chain in order to meet the consumers'
growing needs, thus making the entire Finnish farm animal chain more competitive
against international imports. Raisio grows by combining ecology, healthiness
and nutrition suitable for a mobile lifestyle in a way that satisfies the needs
of consumers and customers.”
RAISIO PLC
Heidi Hirvonen
Communications Manager
tel. +358 50 567 3060
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 556 6512
A press and analyst event will be arranged on 11 February 2010 at 2:00 p.m. in
Helsinki. It will be held at Hotel Scandic Simonkenttä, in the Bulsa-Freda
meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 11 February 2010 at 4.00 p.m.
Participants are requested to call the number +358 (0)9 8244 0576, PIN code
248784.
Financial releases in 2010
Raisio plc's annual report will be published week 10, and the Annual General
Meeting will be held on Thursday, 25 March 2010. The interim report for
January-March will be published on 4 May 2010, for January-June on 17 August
2010 and for January-September on 2 November 2010.
The financial statements review has not been audited.
FINANCIAL REPORTING
Raisio reports on its performance in line with the Group's continuing
operations. The reportable Divisions are Brands and Business to Business. The
Brands Division includes international brands (Benecol) and local brands, while
the Business to Business Division includes the feed, malt and oil milling
businesses. Discontinued operations had a considerable impact on the Group's
performance in the review period.
FINANCIAL PERFORMANCE IN OCTOBER-DECEMBER 2009
Net sales
Raisio Group's net sales from continuing operations in October-December totalled
EUR 91.5 million (Q4/2008: EUR 118.5 million). The October-December net sales of
the Brands Division were EUR 45.5 million (EUR 50.8 million), those of the
Business to Business Division EUR 46.3 million (EUR 70.8 million) and those of
other operations EUR 0.3 million (EUR 0.3 million). Net sales from outside
Finland amounted to EUR 28.5 million (EUR 43.5 million) in the fourth quarter,
accounting for 31.1 per cent (36.7%) of net sales.
Result
The Group's EBIT from continuing operations in October-December totalled EUR 4.2
million (EUR 3.8 million). The EBIT of the Brands Division amounted to EUR 2.8
million (EUR 2.5 million), that of the Business to Business Division to EUR 2.0
million (EUR 2.0 million) and that of other operations to EUR -0.8 million (EUR
-0.9 million).
Depreciation, allocated to operations in the income statement, totalled EUR 3.4
million (EUR 4.4 million).
The fourth-quarter pre-tax result was EUR 4.5 million (EUR 3.5 million). The
Group's net financial expenses totalled EUR 0.3 million (EUR -0.2 million).
Group's post-tax result from continuing operations was EUR 3.0 million (EUR 4.3
million). Earnings per share in the fourth quarter amounted to EUR 0.02 (EUR
0.03).
FINANCIAL REVIEW OF 2009
Operating environment
Solid competence, efficient operations and good management have enabled Raisio
to solidify its position as a forerunner and expert in the food industry. As
predicted, Raisio's strong brands grew even stronger during the difficult times
of 2009. The global recession had a bigger impact on the demand for products
offered by the Business to Business Division. Despite the rapid changes in the
operating environment, Raisio managed to further improve its efficiency and
profitability in the review period. Rather than creating threats, the changes in
the global operating environment offer Raisio new alternatives and
opportunities.
Following the turnaround and profitability improvement phases, Raisio's
operations have stabilised at a satisfactory level in three years. The company
will now move to a growth phase, which in practice means acquisitions, seeing as
organic growth in the current market areas will not suffice to reach the
company's targets.
Raisio is looking for growth through acquisitions that offer good opportunities
for success and support the achievement of the company's strategy. Acquisitions
ensure business growth and the achievement of targets in the long term, as well
as create added value for owners. Raisio has already made preparations for the
following phases. The Group aims to grow through acquisitions in Europe and
expand into new market areas and new product categories. The divestment of the
margarine business supported the company's growth target, as it was carried out
at the right time amid strong consolidation in the sector.
Ecology, responsibility and consumer orientation form the foundation for
Raisio's operations. The only way for companies to ensure their operating
conditions in the future is by acting responsibly, in line with the principles
of sustainable development and by saving environmental resources. The consumers'
readiness and wish to make a difference through sustainable consumption choices
are increasing fast. This emphasises the importance of, for example, products'
carbon footprint label and the information it offers. Thanks to its sufficient
land area and water supplies, Finland will also offer good opportunities for
versatile food production in the future. Finland is a small country in terms of
its national economy, which is why the joint efforts of the national food chain
and the development of operating conditions are necessary to secure the future.
Net sales
Raisio Group's net sales from continuing operations in January-December totalled
EUR 375.9 million (2008: EUR 463.2 million), down 18.8 per cent on the previous
year. Net sales were primarily affected by the drop in raw material prices. Net
sales from outside Finland represented 33.1% (35.0%) of the total, amounting to
EUR 124.4 million (EUR 162.2 million).
The January-December net sales of the Brands Division were EUR 177.6 million
(EUR 195.4 million), those of the Business to Business Division EUR 205.6
million (EUR 282.7 million) and those of other operations EUR 0.9 million (EUR
1.0 million).
Result
The Group's EBIT from continuing operations in January-December totalled EUR
20.5 million (EUR 20.2 million) and, including one-off items, EUR 19.5 million
(EUR 24.4 million). The EBIT of the Brands Division amounted to EUR 20.5 million
(EUR 11.5 million and, including one-off items, EUR 15.7 million), that of the
Business to Business Division EUR 3.0 million (EUR 12.3 million), that of other
operations EUR -3.3 million and, including one-off items, EUR -4.3 million (EUR
-3.4 million).
In 2009, Raisio recognised a total of EUR 1.1 million in one-off expenses for
other operations, resulting from an unrealised acquisition and donation. The
figures for the comparison period include a one-off item of EUR 4.2 million from
the dissolution of the joint venture with Lantmännen.
Depreciation, allocated to operations in the income statement, totalled EUR 14.8
million (EUR 16.8 million) in January-December.
The pre-tax result for 2009 was EUR 20.1 million (EUR 19.8 million) and,
including one-off items, EUR 18.9 million (EUR 24.0 million). The Group's net
financial items in January-December totalled EUR -0.5 million and, including
one-off items, EUR -0.6 million (EUR -0.4 million).
Raisio's post-tax result from continuing operations was EUR 14.2 million (EUR
15.2 million) and, including one-off items, EUR 13.4 million (EUR 19.5 million).
In January-December, earnings per share were EUR 0.09 (EUR 0.10 and, including
one-off items, EUR 0.12).
Balance sheet and cash flow
Raisio's balance sheet total at the end of December amounted to EUR 444.2
million (31 December 2008: EUR 364.0 million). Shareholders' equity totalled EUR
322.0 million (EUR 279.4 million), while equity per share at the end of the year
was EUR 2.06 (EUR 1.79).
Raisio's interest-bearing debt was EUR 62.8 million at the end of December (EUR
19.7 million). Net interest-bearing debt was EUR -150.2 million (EUR -58.2
million). The equity ratio at the end of the year totalled 73.4 per cent
(77.9%), and gearing was -46.6 per cent (-20.8%). Return on investment was 6.1
per cent (8.4%).
Cash flow from operations in January-December was EUR 51.5 million (EUR 52.7
million). Working capital amounted to EUR 66.1 million at the end of the review
period (EUR 88.9 million). The company has successfully managed its working
capital, which decreased by some EUR 23 million from the previous year. The
biggest impact on working capital came from the decrease in inventories thanks
to an enhanced control process.
Raisio plc paid EUR 10.8 million in dividends in 2009.
Discontinued operations
The divestment of Raisio's margarine business to Bunge was concluded on 16
October 2009. The price of the transaction was EUR 80 million. The transaction
included the margarine business in Finland and Poland. The result from
discontinued operations, including the divestment of the margarine business, was
EUR 39.7 million. The final, specified transaction price was still under review
at the date of the financial statements.
Investments
Raisio makes investments that target real needs. It aims to use existing
capacity more efficiently by controlling it on the basis of customer
information, as well as to raise utilisation rates. Raisio's partners assume
responsibility for production and related investments on their own behalf. The
Group's gross investments in 2009 totalled EUR 10.0 million (EUR 26.9 million),
or 2.7 per cent (5.8%) of net sales. The gross investments of the Brands
Division amounted to EUR 3.3 million (EUR 15.6 million), that of the Business to
Business Division to EUR 5.4 million (EUR 9.3 million) and that of other
operations to EUR 1.3 million (EUR 1.9 million).
The main investment in 2009 targeted the feed plant in the production site in
Raisio. Investments in the comparison period included the acquisition cost of
Melia Ltd's shares, totalling EUR 12.7 million.
Research and development
Raisio follows a consumer- and customer-oriented approach. R&D in foods develops
plant-based, ecological, healthy, tasty and convenient products. The Benecol
business carries out broad-based co-operation with research institutes and
universities in clinical trials. R&D in feeds develops new feed mixes and
feeding solutions that improve the efficiency and profitability of livestock
production, ensure the animals' well-being and health and reduce the
environmental load of livestock production.
The Group's research and development inputs in 2009 totalled EUR 6.1 million
(EUR 5.8 million), or 1.6 per cent (1.3%) of net sales. The R&D expenses of the
Brands Division were EUR 4.9 million (EUR 4.8 million) and those of the Business
to Business Division EUR 1.2 million (EUR 1.0 million).
SEGMENT INFORMATION
BRANDS DIVISION
The January-December net sales of the Brands Division totalled EUR 177.6 million
(EUR 195.4 million). The net sales of international brands increased by 2.7 per
cent to EUR 47.0 million (EUR 44.3 million). The net sales generated by local
brands were EUR 136.3 million (EUR 158.8 million). The Division accounted for
around 47 per cent of the Group's net sales.
The Division's January-December EBIT was EUR 20.5 million (EUR 11.5 million,
and, including one-off items, EUR 15.7 million). This represents 11.5 per cent
(5.9%) of net sales, which exceeds the Division's target of 10 per cent. As
predicted, Raisio's strong brands grew even stronger during difficult times. The
increase in the sales volumes of Benecol products, as well as the sales growth
of products sold under the Elovena and Sunnuntai brands especially in Finland,
contributed to the considerable improvement in EBIT.
International brands - Benecol
The recession has not affected the overall demand for Benecol products. Their
sales volumes increased in several European countries. In Great Britain, Benecol
sales outpaced market growth. The sales promotion measures taken in Poland
further strengthened the position of the Benecol brand. Bunge became a new,
important partner for Raisio. In addition, Benecol products were launched on the
Colombian market.
Plant stanol ester, the cholesterol-lowering ingredient in Benecol products, was
one of the first products in Europe to obtain approval for the use of a
disease-risk-reduction health claim under the Nutrition and Health Claim
Regulation in autumn 2009. The following health claim is permitted in the
marketing of Benecol foods containing plant stanol ester: “Plant stanol esters
have been shown to lower blood cholesterol. High cholesterol is a risk factor in
the development of coronary heart disease.”
Clinical studies carried out in the Netherlands and Finland showed that a high
daily intake of plant stanol ester, the Benecol ingredient, is safe for use and
reduces cholesterol more effectively. The European Journal of Clinical Nutrition
nominated plant stanol ester as one of the world's top ten nutritional
innovations in the past thirty years.
Local brands
The Elovena, Sunnuntai and Carlshamn brands have strengthened during the
recession, even though it has affected consumers' purchasing behaviour.
Inexpensive everyday food and home baking grew more popular. Elovena products
achieved record sales in Finland last year. The recession made 2009 a tough year
in the HoReCa sector, which encompasses the catering business, bakeries and
other food industry companies.
In 2009, Raisio completed its brand and product range optimisation and a
profound customer co-operation development process, as well as raised the
efficiency of its order-supply process and improved availability, especially in
Finland, to correspond to those of the best companies. The divestment of the
margarine business to Bunge completed in October 2009. The deal included the
Finnish and Polish margarine businesses. Raisio will continue to sell margarine
as a distributor of Bunge in Finland, Sweden and Estonia. Non-dairy products
were launched under the Carlshamn brand on the Swedish market. A new company,
Raisio Sp. z o.o., was established in Poland. Its product range includes Benecol
snacks and grain products.
As a pioneering company, Raisio expanded the use of carbon footprint labelling
of its products and was the world's first food company to indicate the overall
water consumption of one of its consumer products on the package.
Key figures for the Brands Division
--------------------------------------------------------------------------------
| | | 10-12/2009 | 10-12/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Net sales | M€ | 45.5 | 50.8 | 177.6 | 195.4 |
--------------------------------------------------------------------------------
| International brands | M€ | 12.4 | 10.5 | 47.0 | 44.3 |
--------------------------------------------------------------------------------
| Local brands | M€ | 34.3 | 42.1 | 136.3 | 158.8 |
--------------------------------------------------------------------------------
| EBIT | M€ | 2.8 | 2.5 | 20.5 | 15.7 |
--------------------------------------------------------------------------------
| One-off items | M€ | 0.0 | 0.0 | 0.0 | 4.2 |
--------------------------------------------------------------------------------
| EBIT, excluding one-off | M€ | 2.8 | 2.5 | 20.5 | 11.5 |
| items | | | | | |
--------------------------------------------------------------------------------
| EBIT | % | 6.2 | 4.9 | 11.5 | 5.9 |
--------------------------------------------------------------------------------
| Investments | M€ | 1.1 | 0.6 | 3.3 | 15.6 |
--------------------------------------------------------------------------------
| Net assets | M€ | - | - | 69.6 | 85.3 |
--------------------------------------------------------------------------------
Targets
The targets for international brands are related to developing and expanding
business worldwide, utilising new research information and developing new
ingredients in order to broaden the product portfolio. Raisio still sees big
opportunities in Asia and South America, where consumers have grown concerned
about the rising cholesterol levels.
The target for Elovena, Sunnuntai and Carlshamn brands aim at profitable,
organic growth in current market areas. The objective of organic growth and
acquisitions in Europe is to expand into new product categories and customer
groups. Another target is to expand the product range of plant-based, ecological
foods in the home market by introducing new, innovative products. Raisio will
expand the use of carbon footprint label in its products.
BUSINESS TO BUSINESS DIVISION
The net sales of the Business to Business Division totalled EUR 205.6 million
(EUR 282.7 million). The reduction resulted from the declining market prices of
malt and vegetable oil caused by the global recession, from the drop in raw
material prices being transferred to product prices, as well as from the reduced
volumes in all operations. The Division accounted for around 53 per cent of the
Group's net sales.
The EBIT of the Business to Business Division totalled EUR 3.0 million (EUR 12.3
million), or 1.4 per cent (4.3%) of net sales. Thanks to reacting quickly and
adjusting its operations, the Division managed to report a profitable EBIT in
each quarter of the exceptionally difficult year, even though the result
decreased clearly year-over-year.
The volume of cattle feeds increased year-over-year. The Ylivieska plant met the
efficiency and volume targets set for it, which led to a clearly stronger market
position in the plant's operating region. One contributing factor was the
confidence that customers showed in the Ylivieska plant as a local feed
supplier. Exports of fish feeds increased over the previous year, while the
volumes of pig and broiler feeds were down as a result of the overall market
decreasing. The good domestic grain crop led to farms using more of their own
grain as feed, while the additional capacity built in the field led to stiffer
competition in the feed market. The recovery of the feed business is linked to
the recovery of markets on the whole and to the profitability of livestock
production.
The recession had a major impact on the operating environment of sectors
dependent on global demand, such as malt and oil milling. The world market price
of malt plunged in the review period and demand diminished in the vegetable oil
market. Raisio adjusted its operations to the market situation.
Key figures for the Business to Business Division
--------------------------------------------------------------------------------
| | | 10-12/200 | 10-12/2008 | 2009 | 2008 |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Net sales | M€ | 46.3 | 70.8 | 205.6 | 282.7 |
--------------------------------------------------------------------------------
| Feed | M€ | 40.0 | 61.4 | 176.1 | 235.9 |
--------------------------------------------------------------------------------
| Malt | M€ | 6.2 | 9.5 | 26.3 | 43.5 |
--------------------------------------------------------------------------------
| Other | M€ | 0.1 | 0.2 | 3.6 | 4.1 |
--------------------------------------------------------------------------------
| EBIT | M€ | 2.0 | 2.0 | 3.0 | 12.3 |
--------------------------------------------------------------------------------
| One-off items | M€ | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| EBIT, excluding | M€ | 2.0 | 2.0 | 3.0 | 12.3 |
| one-off items | | | | | |
--------------------------------------------------------------------------------
| EBIT | % | 4.3 | 2.8 | 1.4 | 4.3 |
--------------------------------------------------------------------------------
| Investments | M€ | 1.3 | 2.8 | 5.4 | 9.3 |
--------------------------------------------------------------------------------
| Net assets | M€ | - | - | 79.2 | 81.7 |
--------------------------------------------------------------------------------
Targets
With the traceability and safety of raw materials becoming increasingly
important in the grain chain, Business to Business operations will continue to
develop versatile co-operation with raw material producers. The main goal in the
feed business is to strengthen the market position in Finland and to increase
export. Raisio wants to be the most cost-effective partner of livestock
producers. The company develops and introduces products and feeding solutions
that improve the environmental efficiency of farms. The malt business aims to
strengthen its position in the domestic market and in exports, as well as to
increase co-operation with strategic partners.
Raisio has launched a development project to increase the use of vegetable oil
for bioenergy and industrial solutions. Work on increasing the cultivation area
of rapeseed in Finland is also ongoing. The goal is to ensure the
competitiveness of the Finnish oil milling business on global markets, as well
as to increase Finland's self-sufficiency in feed protein.
MANAGEMENT AND ADMINISTRATION
Raisio's Board of Directors had five members in 2009: Simo Palokangas
(Chairman), Michael Ramm-Schmidt (Deputy Chairman), Anssi Aapola, Erkki Haavisto
and Satu Lähteenmäki. The Board members are independent of the company and of
significant shareholders.
Raisio's Supervisory Board is chaired by Michael Hornborg, MA (Agriculture &
Forestry) and farmer, as of May 2009, while Holger Falck, agronomist, is the
Deputy Chairman.
Vesa Kurula, Vice President, Operations, and a member of Raisio's management
team, left the company in September 2009.
PERSONNEL
Raisio's continuing operations employed 593 people at year-end (31 December
2008: 625 people), with 14.3 per cent (31 December 2008: 14.7%) of the staff
employed outside Finland. The Brands Division had 288, the Business to Business
Division 244 and the service functions 61 employees on 31 December 2009.
In 2009, Raisio's wages and fees from continuing operations totalled EUR 41.7
million (EUR 46.3 million in 2008 and EUR 46.1 million in 2007) including other
personnel expenses.
Personnel-related matters are reported in greater detail in the corporate
responsibility report published in conjunction with the annual report.
CORPORATE RESPONSIBILITY
Raisio is committed to taking responsibility for its operating environment,
environmental matters and personnel, developing its operations in line with the
principles of sustainable development. The company is closely involved in
dealing with global changes that affect the food supply chain by developing
ecological and healthy products and solutions that preserve natural resources
and satisfy customer needs. Raisio is not aware of any significant financial
environmental risks related to its operations. The company's operations are on
an ecologically, ethically and financially solid foundation.
Raisio's corporate responsibility report is included in the annual report. The
company reports on its corporate responsibility in compliance with the
international GRI guidelines on sustainable development.
CHANGES IN GROUP STRUCTURE
The divestment of the margarine business included the Polish company Raisio
Polska Foods Sp. z o.o. Raisio established a new company in Poland, Raisio Sp. z
o.o. Its product range includes Benecol snacks and grain products.
COMPANY SHARES
At the end of the review period, Raisio plc held 8,803,109 free shares and
201,295 restricted shares, which were acquired from 2005 to 2009 based on the
authorisation given by the Annual General Meeting. The number of free shares
held by the company accounts for 6.7 per cent of all free shares and the votes
they represent, while the corresponding figure for restricted shares is 0.6 per
cent. In all, the company shares held by the Group represent 5.5 per cent of the
company's share capital and 1.6 per cent of overall votes. The company does not
have any shares as collateral and did not have any in the review period. Since
all of the shares were purchased in public trading, the company does not know
what proportion of them may have been purchased from close associates of the
company.
Of the shares held by the company, 3,487 restricted shares were purchased from
January to March 2009 based on the authorisation given by the 2008 Annual
General Meeting. The shares were purchased in public trading at the going price
at the time of acquisition. A total of EUR 5,689 was paid for them. The number
of restricted shares purchased in the review period accounts for 0.1 per cent of
all restricted shares and the votes they represent. The number of all shares
acquired in the period accounts for 0.002 per cent of the share capital and
0.008 per cent of overall votes.
Based on the authorisation given by the 2008 Annual General Meeting, 355,391
free shares were assigned in the review period. Of these, 334,500 were assigned
as a part of the 2008 share-based incentive scheme in August 2009, and a total
of 20,891 were assigned monthly, as of 1 April 2009, as rewards to the Chairman
and members of the Board of Directors for handling their duties. The share-based
rewards for April and May, however, were assigned in May. The value of free
shares assigned as a part of the share-based incentive scheme was EUR 696,764 at
the time of assignment, while the value of free shares assigned as rewards to
the Board of Directors totalled EUR 45,190. The number of assigned shares equals
0.02 per cent of the share capital and 0.04 per cent of the votes it represents.
Of the 13 individuals who received shares based on the 2008 share-based
incentive scheme, Jacek Dziekonski, Markku Krutsin, Leif Liedes, Merja Lumme,
Pasi Lähdetie, Jyrki Paappa, Vincent Puojardieu and Matti Rihko belonged to the
close associates of the company.
The Board of Directors was authorised by the Annual General Meeting in 2009 to
dispose of all company shares. According to the Companies Act, the Board of
Directors is also entitled to annul them. No shares were annulled in the review
period.
As recognition of and reward for the successfully completed divestment of the
margarine business, the company has decided to assign 168,000 Raisio plc free
shares to 51 individuals in March 2011. The shares to be assigned at that time
account for 0.1 per cent of the share capital and 0.02 per cent of the votes it
represents, and their value will be determined at the time of assignment.
Subsidiaries do not and did not hold parent company shares, and they do not and
did not hold them as collateral. The Raisio Group Research Foundation holds
150,510 restricted shares, which is 0.44 per cent of the restricted shares and
the votes they represent and, correspondingly, 0.09 per cent of the whole share
capital and 0.37 per cent of the votes it represents. The Foundation does not
and did not hold Raisio plc shares as collateral. A share in Raisio or its
subsidiary does not entitle the holder to participate in the Annual General
Meeting.
EVENTS AFTER THE REVIEW PERIOD
The proceedings concerning the sales profit from the divestment of Raisio's
chemical business in 2004 have concluded favourably for Raisio on Tuesday, 9
February 2010. The Tax Administration's Tax Recipients' Legal Services Unit was
not granted the leave to appeal by the Supreme Administrative Court. Raisio has
considered the sales profit of approximately EUR 220 million to be free of tax
and has handled it accordingly in its accounting. This was also the opinion of
the Tax Office for Major Corporations in regular taxation, the Assessment
Adjustment Board, the Helsinki Administrative Court and now the Supreme
Administrative Court.
On Wednesday, 10 February 2010 Raisio announced a public offer to acquire the
entire issued ordinary share capital of Glisten plc valuing the entire issued
ordinary share capital at approximately EUR 22.8 million. Raisio offers EUR 1.61
per share. Glisten plc is a public company listed on the AIM market of the
London Stock Exchange operating in the health, nutrition and premium snacking
sectors. The completion of the acquisition process is expected to take place at
the beginning of the second quarter of 2010 if the shareholders of Glisten
support Raisio's offer. Raisio has a significant support from Glisten
shareholders including senior management to accept the offer. The acquisition
supports Raisio's strategy and provides both companies good opportunities for
growth.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
Economic growth may lead to an increase in the valuation of acquisitions.
Uncertainty in the global economy may cause higher volatility in raw material
and product prices, and business management will continue to be challenging.
Based on an appeal made by livestock producers, the Finnish Competition
Authority will examine the legality of closed chains to determine the
possibility of slaughterhouses to restrict the independence of livestock
producers by imposing demands on feed contracts. If such activities are found to
be legal, they will limit the independence of feed customers and restrict their
freedom to choose their feed supplier based on competitive bidding.
The current EU health care claim process should create opportunities for Raisio,
and on the other side it may also represent some risks as some claims are still
under scrutiny by the EU parliament and as the implementation of the approved
health claims are not yet totally clear.
OUTLOOK FOR 2010
In 2010-2011, Raisio will move to a growth phase. We expect a considerable
increase in net sales in 2010. The cost of growth projects is predicted to
impact the Group's profitability, especially in the early part of the year. The
target EBIT of 10 per cent for the Brands Division and 5 per cent for the
Business to Business Division will not yet be achieved in 2010. Our target is to
maintain the existing level of profitability at the beginning of the growth
phase.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFITS
The parent company's distributable equity was EUR 199,519,488.14 on 31 December
2009. The Board of Directors will propose a dividend of EUR 0.09 per share at
the Annual General Meeting on 25 March 2010.
The ex-dividend date is 26 March 2010, and the record date is 30 March 2010. The
payable date is 8 April 2010.
Raisio, 11 February 2010
Raisio plc
Board of Directors
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 10-12/2009 | 10-12/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Net sales | 91.5 | 118.5 | 375.9 | 463.2 |
--------------------------------------------------------------------------------
| Expenses corresponding to | -79.2 | -101.3 | -313.3 | -394.5 |
| products sold | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 12.3 | 17.2 | 62.6 | 68.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and | -8.1 | -13.5 | -43.2 | -44.3 |
| expenses, net | | | | |
--------------------------------------------------------------------------------
| EBIT | 4.2 | 3.8 | 19.5 | 24.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 0.9 | 0.9 | 3.1 | 2.4 |
--------------------------------------------------------------------------------
| Financial expenses | -0.6 | -1.1 | -3.7 | -2.8 |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.1 | 0.1 |
| associated companies and | | | | |
| joint ventures | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 4.5 | 3.5 | 18.9 | 24.0 |
--------------------------------------------------------------------------------
| Income tax | -1.5 | 0.8 | -5.6 | -4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period from | 3.0 | 4.3 | 13.4 | 19.5 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | 37.2 | 1.5 | 39.7 | 2.8 |
| Result for the period from | | | | |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 40.3 | 5.9 | 53.1 | 22.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 40.3 | 5.9 | 53.1 | 22.1 |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share from the | | | | |
| profit attributable to | | | | |
| equity holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share | 0.02 | 0.03 | 0.09 | 0.12 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.02 | 0.03 | 0.09 | 0.12 |
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share | 0.24 | 0.01 | 0.26 | 0.02 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.24 | 0.01 | 0.25 | 0.02 |
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 10-12/2009 | 10-12/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Result for the period | 40.3 | 5.9 | 53.1 | 22.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| Translation differences | -0.3 | 0.0 | -0.3 | 0.1 |
| recognised in profit and | | | | |
| loss on disposal of foreign | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Gains and losses arising | 0.1 | -1.7 | -0.3 | -1.0 |
| from translating the | | | | |
| financial statements of | | | | |
| foreign operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive income for the | 40.1 | 4.2 | 52.6 | 21.3 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Components of comprehensive | | | | |
| income: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 40.1 | 4.2 | 52.6 | 21.2 |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
BALANCE SHEET (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Intangible assets | 7.5 | 10.0 |
--------------------------------------------------------------------------------
| Goodwill | 0.0 | 1.2 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 95.3 | 124.2 |
--------------------------------------------------------------------------------
| Shares in associated companies and joint | 0.8 | 0.7 |
| ventures | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 0.4 | 0.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 6.5 | 7.9 |
--------------------------------------------------------------------------------
| Total non-current assets | 111.0 | 145.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 55.0 | 73.3 |
--------------------------------------------------------------------------------
| Accounts receivables and other receivables | 54.9 | 66.0 |
--------------------------------------------------------------------------------
| Financial assets at fair value through | 215.3 | 66.8 |
| profit or loss | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 8.0 | 12.8 |
--------------------------------------------------------------------------------
| Total current assets | 333.2 | 218.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 444.2 | 364.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the | | |
| parent company | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -18.5 | -19.3 |
--------------------------------------------------------------------------------
| Other equity attributable to equity holders | 312.8 | 271.0 |
| of the parent company | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the | 322.0 | 279.4 |
| parent company | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 322.0 | 279.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 7.6 | 7.4 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Reserves | 1.4 | 0.0 |
--------------------------------------------------------------------------------
| Non-current financial liabilities | 48.6 | 14.3 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 57.8 | 22.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities | 48.4 | 55.6 |
--------------------------------------------------------------------------------
| Reserves | 1.6 | 1.1 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value through | 0.1 | 0.4 |
| profit or loss | | |
--------------------------------------------------------------------------------
| Current financial liabilities | 14.2 | 5.5 |
--------------------------------------------------------------------------------
| Total current liabilities | 64.4 | 62.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 122.1 | 84.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 444.2 | 364.0 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (M€)
--------------------------------------------------------------------------------
| | Shar | Sha | Res | Own | Tran | Retai | Total | Minor | Total |
| | e | re | erv | shar | slat | ned | | ity | equit |
| | capi | pre | e | es | ion | earni | | inter | y |
| | tal | miu | fun | | diff | ngs | | est | |
| | | m | d | | eren | | | | |
| | | res | | | ces | | | | |
| | | erv | | | | | | | |
| | | e | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.3 | 167.0 | 266.1 | 12.7 | 278.8 |
| 31.12.2007 | | | 6 | 9 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | -0.9 | 22.1 | 21.2 | 0.1 | 21.3 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -6.3 | -6.3 | - | -6.3 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | -1.6 | - | - | -1.6 | - | -1.6 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.2 | - | 0.1 | 0.2 | - | 0.2 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
| Squeeze-out | - | - | - | - | - | -0.2 | -0.2 | -12.8 | -13.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.2 | 182.7 | 279.4 | 0.0 | 279.4 |
| 31.12.2008 | | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | -0.6 | 53.1 | 52.6 | 0.0 | 52.6 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -10.9 | -10.9 | - | -10.9 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.9 | - | 0.1 | 1.0 | - | 1.0 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.7 | 225.0 | 322.0 | 0.0 | 322.0 |
| 31.12.2009 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (M€)
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Result before taxes, continuing operations | 18.9 | 24.0 |
--------------------------------------------------------------------------------
| Result before taxes, discontinued operations | 39.3 | 3.5 |
--------------------------------------------------------------------------------
| Adjustments | -24.1 | 17.3 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 34.1 | 44.8 |
--------------------------------------------------------------------------------
| Change in current receivables | 4.2 | -0.7 |
--------------------------------------------------------------------------------
| Change in inventories | 16.3 | 18.1 |
--------------------------------------------------------------------------------
| Change in current non-interest-bearing | -2.6 | -5.7 |
| liabilities | | |
--------------------------------------------------------------------------------
| Total change in working capital | 17.9 | 11.7 |
--------------------------------------------------------------------------------
| Financial items and taxes | -0.5 | -3.8 |
--------------------------------------------------------------------------------
| Cash flow from business operations | 51.5 | 52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in fixed assets | -10.0 | -17.1 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 47.1 | 0.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0.0 | -8.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 23.6 | 1.3 |
--------------------------------------------------------------------------------
| Investments on marketable securities | -10.0 | 0.0 |
--------------------------------------------------------------------------------
| Loans granted | -0.1 | -1.9 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 0.3 | 1.8 |
--------------------------------------------------------------------------------
| Cash flow from investments | 50.9 | -23.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | 43.9 | 15.7 |
--------------------------------------------------------------------------------
| Change in current loans | -0.7 | -3.2 |
--------------------------------------------------------------------------------
| Repurchase of own shares | 0.0 | -1.6 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of the | -10.8 | -6.3 |
| parent company | | |
--------------------------------------------------------------------------------
| Cash flow from financial operations | 32.4 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | 134.8 | 33.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the period | 77.9 | 43.6 |
--------------------------------------------------------------------------------
| Effects of changes in foreign exchange rates | 0.1 | 0.5 |
--------------------------------------------------------------------------------
| Impact of change in market value on liquid | 0.1 | 0.4 |
| funds | | |
--------------------------------------------------------------------------------
| Liquid funds at period-end | 213.0 | 77.9 |
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
This financial statements review has been prepared in compliance with IAS 34
Interim Financial Reporting according to the same accounting principles and
calculation methods used in financial statements 2008. The Group adopted the
following IFRSs or amendments to them on 1 January 2009:
Revised IAS 1, Presentation of Financial Statements: Amendments have been made
to the presentation of the income statement and the statement of changes in
equity.
IFRS 8, Operating Segments, states that segment information must be based on
internal reporting submitted to management and on the principles followed in
reporting. Since Raisio's segment information is already based on internal
reports submitted to management, the new standard has not caused any changes to
segment reporting.
IAS 23, Borrowing Costs: The amended standard requires that the acquisition cost
of an asset that meets the conditions shall include borrowing costs incurred
from the acquisition, construction or production of the asset in question.
The adopted standards have not affected the Group's results.
When preparing the financial statements, management must make estimates and
assumptions that affect the reported assets and liabilities, income and
expenses. Actual figures may differ from these estimates.
The financial statements review is shown in EUR millions.
SEGMENT INFORMATION
Raisio has modified its segment reporting in conjunction with its Q2 2009
reporting to match its management model in place after the divestment of the
margarine business. The new reportable segments are Brands and Business to
Business. The Brands segment includes Benecol and local brands, and the reported
figures are those of the Benecol business and of the Northern and Eastern
European operations, which belonged to the former Food Division. The Business to
Business segment corresponds to the former Feed & Malt segment, and includes the
feed, malt and oil milling businesses.
An agreement on the divestment of the margarine business was signed with Bunge
in May. The deal was concluded on 16 October 2009. The figures for Raisio Polska
Foods Sp, formerly part of the Food Division, are reported under discontinued
operations.
The figures for previous periods presented in this financial statements review
have been adjusted accordingly.
NET SALES BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 10-12/200 | 10-12/200 | 2009 | 2008 |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
| Brands | 45.5 | 50.8 | 177.6 | 195.4 |
--------------------------------------------------------------------------------
| Business to Business | 46.3 | 70.8 | 205.6 | 282.7 |
--------------------------------------------------------------------------------
| Other operations | 0.3 | 0.3 | 0.9 | 1.0 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -0.6 | -3.5 | -8.1 | -16.0 |
--------------------------------------------------------------------------------
| Total net sales | 91.5 | 118.5 | 375.9 | 463.2 |
--------------------------------------------------------------------------------
EBIT BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 10-12/200 | 10-12/200 | 2009 | 2008 |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
| Brands | 2.8 | 2.5 | 20.5 | 15.7 |
--------------------------------------------------------------------------------
| Business to Business | 2.0 | 2.0 | 3.0 | 12.3 |
--------------------------------------------------------------------------------
| Other operations | -0.8 | -0.9 | -4.3 | -3.4 |
--------------------------------------------------------------------------------
| Eliminations | 0.2 | 0.1 | 0.3 | -0.2 |
--------------------------------------------------------------------------------
| Total EBIT | 4.2 | 3.8 | 19.5 | 24.4 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 31,12,2009 | 31,12,2008 |
--------------------------------------------------------------------------------
| Brands | 69.6 | 85.3 |
--------------------------------------------------------------------------------
| Business to Business | 79.2 | 81.7 |
--------------------------------------------------------------------------------
| Other operations, assets held for sale and | 173.2 | 112.4 |
| unallocated items | | |
--------------------------------------------------------------------------------
| Total net assets | 322.0 | 279.4 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 10-12/200 | 10-12/200 | 2009 | 2008 |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
| Brands | 1.1 | 0.6 | 3.3 | 15.6 |
--------------------------------------------------------------------------------
| Business to Business | 1.3 | 2.8 | 5.4 | 9.3 |
--------------------------------------------------------------------------------
| Other operations | 0.6 | 0.6 | 1.3 | 1.9 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total investments | 3.0 | 4.0 | 10.0 | 26.9 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (M€)
--------------------------------------------------------------------------------
| | 10-12/200 | 10-12/200 | 2009 | 2008 |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
| Finland | 63.0 | 75.0 | 251.5 | 301.0 |
--------------------------------------------------------------------------------
| Rest of Europe | 26.6 | 41.9 | 117.4 | 156.3 |
--------------------------------------------------------------------------------
| ROW | 1.9 | 1.7 | 7.1 | 5.8 |
--------------------------------------------------------------------------------
| Total | 91.5 | 118.5 | 375.9 | 463.2 |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
On 14 May 2009, Raisio announced it had signed an agreement on the divestment of
its margarine business to Bunge. The divestment was concluded on 16 October
2009. Discontinued operations in the income statement include the result of
Raisio Polska Foods Sp's margarine business, as well as the impact that the
divestment of the margarine business had on results. The result of the Finnish
margarine business is still reported under continuing operations, since Raisio
will continue to sell margarines in Finland, Sweden and Estonia as a distributor
of Bunge. The comparative information for 2008 has been amended correspondingly.
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Result for the discontinued operations (M€) | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | 32.7 | 48.6 |
--------------------------------------------------------------------------------
| Expenses | -28.9 | -45.1 |
--------------------------------------------------------------------------------
| Result before taxes | 3.7 | 3.5 |
--------------------------------------------------------------------------------
| Taxes | -0.7 | -0.7 |
--------------------------------------------------------------------------------
| Result after taxes | 3.1 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings due to discontinuation | 35.6 | |
--------------------------------------------------------------------------------
| Taxes | 1.1 | |
--------------------------------------------------------------------------------
| Result after taxes | 36.7 | |
--------------------------------------------------------------------------------
| Result for discontinued operations | 39.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued operations | | |
| (M€) | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | 7.3 | 5.4 |
--------------------------------------------------------------------------------
| Cash flow from investments | 70.7 | 0.7 |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -1.0 | -4.3 |
--------------------------------------------------------------------------------
| Total cash flow | 77.0 | 1.8 |
--------------------------------------------------------------------------------
TANGIBLE ASSETS (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of the | 417.1 | 430.2 |
| period | | |
--------------------------------------------------------------------------------
| Conversion differences | -1.1 | -1.8 |
--------------------------------------------------------------------------------
| Increase | 9.4 | 14.2 |
--------------------------------------------------------------------------------
| Decrease | -92.6 | -25.6 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Acquisition cost at period-end | 332.7 | 417.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and write-downs at | 292.8 | 302.3 |
| the beginning of the period | | |
--------------------------------------------------------------------------------
| Conversion difference | -0.7 | -1.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | -73.4 | -24.7 |
--------------------------------------------------------------------------------
| Depreciation for the period | 12.5 | 14.9 |
--------------------------------------------------------------------------------
| Write-downs | 6.2 | 1.3 |
--------------------------------------------------------------------------------
| Accumulated depreciation and write-downs at | 237.4 | 292.8 |
| period-end | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at period-end | 95.3 | 124.2 |
--------------------------------------------------------------------------------
RESERVES (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| At the beginning of the period | 1.1 | 1.9 |
--------------------------------------------------------------------------------
| Increase in provisions | 2.3 | 0.0 |
--------------------------------------------------------------------------------
| Provisions used | -0.4 | -0.8 |
--------------------------------------------------------------------------------
| At period-end | 3.1 | 1.1 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Sales to associated companies and joint | 12.1 | 13.6 |
| ventures | | |
--------------------------------------------------------------------------------
| Purchases from associated companies and | 0.1 | 0.1 |
| joint ventures | | |
--------------------------------------------------------------------------------
| Sales to key employees in management | 0.2 | 1.1 |
--------------------------------------------------------------------------------
| Purchases from key employees in management | 0.7 | 0.9 |
--------------------------------------------------------------------------------
| Receivables from associated companies and | 1.2 | 1.4 |
| joint ventures | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies and | 0.2 | 0.2 |
| joint ventures | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Contingent off-balance sheet liabilities | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 1.3 | 1.8 |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other liabilities | 2.8 | 1.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 0.6 | 0.8 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (M€)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Nominal values of derivative contracts | | |
--------------------------------------------------------------------------------
| Currency forward contracts | 7.5 | 28.9 |
--------------------------------------------------------------------------------
| Interest rate swaps | 39.4 | 10.0 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (M€)
--------------------------------------------------------------------------------
| | 10-1 | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2/ | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| | 2009 | | | | | | | |
--------------------------------------------------------------------------------
| Net sales by | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Brands | 45.5 | 43.5 | 44.2 | 44.5 | 50.8 | 49.1 | 46.7 | 48.7 |
--------------------------------------------------------------------------------
| Business to | 46.3 | 54.2 | 55.8 | 49.3 | 70.8 | 78.7 | 68.9 | 64.3 |
| Business | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 0.3 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Interdivisional | -0.6 | -2.4 | -2.4 | -2.7 | -3.5 | -4.2 | -4.3 | -4.0 |
| net sales | | | | | | | | |
--------------------------------------------------------------------------------
| Total net sales | 91.5 | 95.5 | 97.8 | 91.2 | 118.5 | 123.9 | 111.6 | 109.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT by segment | | | | | | | | |
--------------------------------------------------------------------------------
| Brands | 2.8 | 7.3 | 4.6 | 5.8 | 2.5 | 3.6 | 2.1 | 7.5 |
--------------------------------------------------------------------------------
| Business to | 2.0 | 0.3 | 0.6 | 0.1 | 2.0 | 4.3 | 4.2 | 1.7 |
| Business | | | | | | | | |
--------------------------------------------------------------------------------
| Other | -0.8 | -0.8 | -1.6 | -1.1 | -0.9 | -1.0 | -0.7 | -0.8 |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | 0.2 | 0.2 | 0.2 | -0.3 | 0.2 | -0.3 | 0.3 | -0.4 |
--------------------------------------------------------------------------------
| Total EBIT | 4.2 | 7.0 | 3.7 | 4.5 | 3.8 | 6.7 | 5.9 | 8.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial | 0.3 | -0.3 | -0.3 | -0.3 | -0.2 | -0.1 | -0.1 | 0.0 |
| income and | | | | | | | | |
| expenses, net | | | | | | | | |
--------------------------------------------------------------------------------
| Share of result | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 |
| of associated | | | | | | | | |
| companies | | | | | | | | |
--------------------------------------------------------------------------------
| Result before | 4.5 | 6.8 | 3.4 | 4.2 | 3.5 | 6.7 | 5.8 | 8.0 |
| taxes | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -1.5 | -1.8 | -1.0 | -1.4 | 0.8 | -2.0 | -2.3 | -1.1 |
--------------------------------------------------------------------------------
| Result for the | 3.0 | 5.0 | 2.5 | 2.9 | 4.3 | 4.7 | 3.5 | 6.9 |
| period from | | | | | | | | |
| continuing | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
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| | 31.12.2009 | 31.12.2008 |
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| Net sales, M€ | 375.9 | 463.2 |
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| Change of net sales, % | -18.8 | 19.7 |
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| Operating margin, M€ | 36.4 | 42.4 |
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| Depreciation and write-downs, M€ | 17.0 | 18.0 |
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| EBIT, M€ | 19.5 | 24.4 |
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| % of net sales | 5.2 | 5.3 |
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| Result before taxes, M€ | 18.9 | 24.0 |
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| % of net sales | 5.0 | 5.2 |
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| Return on equity, ROE, % | 4.5 | 7.0 |
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| Return on investment, ROI, % | 6.1 | 8.4 |
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| Interest-bearing financial liabilities at | 62.8 | 19.7 |
| period-end, M€ | | |
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| Net interest-bearing financial liabilities | -150.2 | -58.2 |
| at period-end, M€ | | |
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| Equity ratio, % | 73.4 | 77.9 |
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| Net gearing, % | -46.6 | -20.8 |
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| Gross investments, M€ | 10.0 | 26.9 |
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| % of net sales | 2.7 | 5.8 |
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| R & D expenses, M€ | 6.1 | 5.8 |
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| % of net sales | 1.6 | 1.3 |
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| Average personnel | 627 | 719 |
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| Earnings/share from continuing operations, | 0.09 | 0.12 |
| EUR | | |
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| Cash flow from operations/share, EUR | 0.33 | 0.34 |
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| Equity/share, EUR | 2.06 | 1.79 |
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| Average number of shares during the period, | | |
| in 1,000s*) | | |
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| Free shares | 121,666 | 122,310 |
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| Restricted shares | 34,268 | 34,294 |
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| Total | 155,934 | 156,605 |
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| Average numer of shares at period-end, in | | |
| 1,000s*) | | |
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| Free shares | 121,894 | 121,516 |
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| Restricted shares | 34,250 | 34,276 |
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| Total | 156,145 | 155,793 |
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| Market capitalisation of shares at | | |
| period-end, M€*) | | |
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| Free shares | 324.2 | 178.6 |
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| Restricted shares | 93.2 | 56.2 |
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| Total | 417.4 | 234.8 |
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*) Number of shares without own shares
CALCULATION OF INDICATORS
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| Return on equity (ROE), % | Result before taxes - income taxes*) |
| | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity (average over the period) |
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| Return on investment | Result before taxes + financial expenses*) |
| (ROI), % | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity + interest-bearing |
| | financial liabilities (average over the period) |
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| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
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| Net interest-bearing | Interest-bearing financial liabilities - liquid |
| financial liabilities | funds and liquid financial assets at fair value |
| | through profit or loss |
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| Net gearing, % | Net interest-bearing financial liabilities |
| | ----------------------------------------- x 100 |
| | Shareholders' equity |
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| Earnings per share*) | Result for the year of parent company |
| | shareholders |
| | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue**) |
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| Cash flow from business | Cash flow from business operations |
| operations per share | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
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| Shareholders' equity per | Equity of parent company shareholders |
| share | ------------------------------------------------ |
| | Number of shares at period-end adjusted for |
| | share issue |
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| Market capitalisation | Closing price, adjusted for issue x number of |
| | shares without own shares at the end of the |
| | period |
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*)The calculation of key indicators uses continuing operations result
**)Excluding shares with a potential return obligation